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NEW YORK - It's hard to deny the appeal of Bluetooth speakers to audio and CE suppliers.
The Consumer Electronics Association (CEA) forecast that Bluetooth speakers will generate $650 million in factory-level sales in 2014, up 69 percent, to exceed forecast soundbar sales of $611 million, up 17 percent.
Although the strongest growth rates are occurring in Bluetooth speakers at $199 and less, premium-audio suppliers see enough opportunity in higher-priced niches to participate in the market with products priced at $299 and more.
Bang& Olufsen's B&O Play sub-brand, high-end speaker maker Bowers & Wilkins, and BenQ are the latest companies to launch their first Bluetooth speakers, all portable AC/DC models priced at $399, $349 and $299, respectively. For its part, pro-audio supplier Marshall introduced its latest AC-only Bluetooth speakers at $300 and $400.
At these price points, the speakers enter a segment that is growing more slowly than the overall Bluetooth-speaker market. Sales of Bluetooth speakers at $299 and up rose 5.2 percent in retail-level dollars for the 12 months ending September, but the segment priced at less than $299 rose 100.7 percent, The NPD Group's Retail Tracking Service found. For the 12 months ending September, the market share of $299-plus Bluetooth speakers shrank to 2.5 percent from the prior 12 months' 4.7 percent.
Growth is slower at the higher price points, said Ben Arnold, NPD's industry analysis director, because of "a lot of activity from premium brands in the $150 to $199 price range." That range, he said, "has become the new Bluetooth premium price band." Prices above $200, he believes, are being challenged by multiroom Wi-Fi...