Overview

The 490 audio and video equipment manufacturers in the US produce electronic audio and video equipment for home entertainment, motor vehicles, and public address and musical instrument amplification. Products include stereo equipment, speaker systems, televisions, household-type video cameras, jukeboxes, microphones, and amplifiers for musical instruments and public address systems. Large firms typically enjoy scale benefits, while small firms compete by offering specialty products.

Dependence on Foreign Contract Manufacturing

Although US firms play a significant role in the domestic audio and video manufacturing market, foreign production in countries with lower labor costs is the norm.

Inventory Obsolescence

Rapidly evolving technology and fast product development cycles, which characterize the audio and video equipment manufacturing industry, can lead to inventory obsolescence.