The consumer electronics (CE) industry is flourishing, with record- setting sales spurred by widespread adoption of digital technology in all walks of life. Americans have fully embraced digital products, using CE devices throughout the day, for information, entertainment and staying connected to their work and families.

For the first time in more than a decade, our industry is experiencing consecutive years of double digit growth, and the impact on the U.S. economy is approaching a quarter of a trillion dollars in expenditures on digital devices and services. Digital television, digital audio and broadband Internet are just a few of the many bright spots. Building on this success, the CE industry is poised for another decade of growth.

2004 remains a record year in many individual product categories and for the industry as a whole. Sales to dealers of all CE products reached $113.5 billion in '04 , an 11 percent increase over 2003, the year the industry first crossed the $100 billion mark when it reached $102.6 billion. It was a banner year for digital products, and we expect even more in 2005 with sales projected to top $125 billion.