Consumer Electronics Repair Services

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 1,700 firms in the US repair and maintain consumer electronics such as cameras, TVs, radios, speakers, amplifiers, media players and recorders. Customers include individuals and households, businesses, and government clients. Firms also contract with electronics manufacturers or become preferred providers for warrantee and recall repair services. Repair and maintenance of computers and communications equipment such as cellphones are not included in this report.

Consumers Replace Rather than Repair

Rather than pay the price to have an existing piece of equipment repaired, consumers often purchase new equipment, which eliminates the opportunity for repair revenue.

Product Recall Opportunities

Firms work with manufacturers to become certified or specialized repair providers, which is handy in the event of product recalls.

Industry size & Structure

A typical consumer electronics repair firm operates out of a single location, employs fewer than 5 workers, and generates about $853,000 annually.

    • The consumer electronics repair industry consists of about 1,700 companies, which employ about 12,300 workers and generate about $1.5 billion annually.
    • Customers include individual consumers and all types of businesses.
    • The 20 largest firms account for 54% of industry revenue, while the rest of the industry is fragmented.
    • Companies include Geek Squad (Best Buy), United Radio, Precision Camera, AbelCine, Consumer Electronic Service, iFix NY and Electronic Wizard.
                                Industry Forecast
                                Consumer Electronics Repair Services Industry Growth
                                Source: Vertical IQ and Inforum

                                Recent Developments

                                Nov 29, 2022 - iPhone 14 Most Repairable Apple Phone Since 2016
                                • The new iPhone 14, which went on sale in September, is the company’s most repairable phone since 2016’s iPhone 7, according to iFixit. The iPhone 14’s design allows independent repair shops, Apple Store employees, and end users to remove two screws to replace the smartphone’s back glass, screen, and battery, which are the most commonly performed repairs. Many other smart phone models use tight tolerances and glue, which makes repairs more difficult. The new iPhone design arrived amid continued calls for firms to provide manuals, parts, and tools to allow third parties and users to repair devices, machinery, and vehicles.
                                • US retail sales at electronics and appliance stores, an indicator of future demand for electronics repair services, declined 12.3% on an unadjusted basis in October 2022 compared to the same month a year earlier. Seasonally adjusted electronics and appliance store sales fell 0.3% in October compared to September.
                                • Amid softening demand, global PC sales declined 15% in the third quarter of 2022 compared to the same period in 2021, according to International Data Corporation (IDC). While PC demand is easing, it remains above pre-pandemic levels as enterprises replace older machines ahead of Microsoft ceasing support for Windows 7 in January 2023. Among specific brands, Lenovo saw the biggest Q3 sales decline with a drop of 22.7%, followed by HP (-17.1%), Dell (-16.1%), Apple (-16.1%), and ASUS (-7.5%).
                                • In June, New York’s legislature became the nation’s first to pass a “right to repair” bill covering nearly all electronics, according to PC World. The repair services industry, and many consumers, have been fighting for such laws for 20 years. Right-to-repair legislation aims to require manufacturers to provide repair information, tools, and parts to independent repair shops instead of requiring repairs to be done in manufacturer facilities or by OEM partners. The law would only apply to New York, but industry watchers suggest repair information will likely spread all over the country and beyond. Insiders indicate that New York Governor Hochul is expected to sign the bill.
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