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 $940,000 annually.

    • The consumer electronics repair industry consists of about 1,700 companies, which employ about 13,500 workers and generate about $1.6 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 13, 2023 - Slower Growth Projected for Industry
                                • Weaker consumer spending, competitive pressures, and higher prices are expected to limit growth in the US consumer electronics repair services industry, which is projected to increase at about a 1% CAGR from 2022 to 2027, according to a recent Inforum forecast. This rate is slower than the projected growth of the overall economy. The forecast follows a volatile period during the pandemic, reflected in a sales drop of 4.1% in 2020, an increase of 11.4% in 2021, and growth of 4.8% in 2022.
                                • Consumer confidence levels fell in October 2023, marking three consecutive months of declines, according to data from The Conference Board. The Conference Board’s consumer confidence index declined to 102.6 in October 2023 from 104.2 in September 2023. According to Dana Peterson, Chief Economist at The Conference Board, “Write-in responses showed that consumers continued to be preoccupied with rising prices in general, and for grocery and gasoline prices in particular. Consumers also expressed concerns about the political situation and higher interest rates. Worries around war/conflicts also rose, amid the recent turmoil in the Middle East.” Peterson added that the decline in consumer confidence was evident across householders aged 35 and up, and not limited to any one income group. Plans to purchase autos and appliances rose in October 2023, while plans to buy a home within the next six months weakened.
                                • Some popular consumer electronics products, such as AirPods, remain challenging to repair, even as more states pass new consumer electronics repair standards, according to Vox. California recently approved a Right to Repair Act, requiring consumer electronics makers to provide independent shops with tools, parts, and manuals needed to make repairs. Apple eventually supported California’s Right to Repair Act following years of opposition. However, Vox interviewed experts who pointed to Apple’s AirPods as a device that eludes repair. According to Kyle Wiens, the CEO of product repair blog and parts retailer iFixit, “If products have batteries, they should be easy to swap or easy to remove so that consumers and recyclers can separate them. You just don’t see that with AirPod design.” A 2022 research paper by New Zealand professor Sy Taffel argued that repair regulations should prohibit the production of irreparable digital devices.
                                • Phone manufacturers are adopting self-repair programs on more of their phone models as they face new “right-to-repair” regulations in the US and Europe. According to Engadget, Apple recently expanded its self-repair program to include the iPhone 14 range and the M2-based versions of the 13-inch MacBook Air and MacBook Pro. T3 reports that the Google Pixel Fold, released this summer, is the first self-repairable foldable phone on the market. Also, Nokia launched a new smartphone, the Nokia G42, that can be repaired by customers using parts provided by iFixit, according to CNBC. Samsung has launched its self-repair program for its phones in Europe and the UK, following its self-repair launch in the US in 2022.
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