Apple to benefit from home audio slowdown

The wide-spread shift from CDs to MP3s and iPods has caused a drop in sales of large home audio systems, putting Apple in a prime position to sell its new iPod Hi-Fi to consumers looking for a simple way to enjoy their digital audio at home. While electronics manufacturers race to add iPod connectivity to their equipment, a new report in the Wall Street Journal says it may be too little too late.

“Sales of traditional stereos have taken a hit,” the Journal reports. “Last year, retail sales of home audio equipment, including stereo system components and surround-sound ‘home theater in a box’ rigs, dropped nearly 18%, to 10.2 million units, according to market-research firm NPD Group Inc. In the same period, sales of portable digital players like Apple’s iPod more than tripled, to 22.4 million units in 2005, from 7.1 million in 2004, says the Consumer Electronics Association, a trade group.”

Music fans aren’t just exclusively listening to their downloaded tunes on an iPod either. “Even when consumers aren’t using portable devices, more are shifting their music consumption away from stereos,” the newspaper says. “Among 1,031 adult respondents to a consumer-behavior survey published last year by the CEA, 34% said they listened to music at home primarily on a PC, compared with just 26% who said they used a stereo or surround-sound receiver as their main home listening system.”

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