Global consumer electronics industry said to lose €10b in 2012

The global consumer electronics industry is reported to have lost €10 billion in the year 2012, and this is in spite of rise in order volumes.

At the leading consumer electronics fair in the world IFA 2012, the order volumes reached €3.8 billion, Hans-Joachim Kamp, Chairman of the Advisory Board of gfu a German consumer electronics market research company has said.

Speaking at the IFA 2013 Global Press Conference, where more than 300 technology journalists from all over the world are gathered, he did not give specific reasons for the loss, even after journalists asked questions.

According to him, the possible reasons could be wrong forecasts between 2009 and 2012, production capacities oversized or adopted too late or organisational costs of companies were too high.

He however indicated that forecasters of the global consumer electronics market couldn’t have been wrong.

He then urged the consumer electronics producers to invest more in research and development, adding however that, the companies must make profits to be able to invest. He called on companies to re-adjust management policies and pay bonuses only for profit and business sustainability and not for market share.

By Emmanuel K. Dogbevi, in Sardinia, Italy