Car salesmen have a new goal: making the biggest profits possible on the newest gadgets.
It’s a lucrative industry that makes up the bulk of the annual profit margins at the major electronics retailers such as Best Buy and Target.
But the technology behind such products is evolving rapidly, and many of the most popular features have a relatively low-cost price tag.
And with more and more consumers relying on their phones, tablets and computers to make their daily lives, those who want to use those devices for entertainment or productivity may find it easier to buy a new, premium set of appliances or televisions.
But a growing number of consumers are also using the technology for home entertainment, according to experts and research companies.
And that has led to an increased demand for new home entertainment equipment.
The trend, which began more than a decade ago, has helped drive the growth of the home entertainment industry, according the American Home Furnishings Association.
That’s because more and better appliances and TVs are being marketed at the same price point, and the more people buy and use those products, the more demand there is for new sets of features, said Matt Ostermeier, chief executive of the Association.
That’s one reason the home-equity industry, which has grown from $8.5 billion in 2008 to $7.9 billion in 2016, is now worth $8 billion to $10 billion, according a recent survey by The NPD Group.
The average price of a new appliance or television is $1,250, according an Associated Press analysis.
In the last 12 months, new home-based equipment sales have increased nearly 40 percent, to $1.65 billion, said Greg Fagan, senior director of research for the NPD group.
In 2017, the industry was worth $4.1 billion, up from $3.5 million in 2016.
The trend isn’t unique to the home.
The same thing is happening in other industries.
“You can’t buy an Apple watch and not be aware of the $1 billion-plus value,” said Michael Pescovitz, a senior vice president at consulting firm IDC.
In fact, home entertainment and electronics have become a major part of the global economy.
For example, in 2016 global consumer spending was $8 trillion, according The Associated Press, and $4 trillion of that came from home-related products.
That includes $2.1 trillion in entertainment and $2 trillion in home appliances.
For consumers, the price is also a marketing tool.
The home entertainment market was worth more than $1 trillion last year, and more than half of that went to home appliances, according Toilings, which tracks the industry.
“It’s the way that you make money and sell to the consumer,” Toilers said.
Home appliances and electronics are expected to account for $3 trillion of the overall home-computer market, which is expected to reach $20 trillion in 2021, according IDC, and will account for more than 60 percent of the total home-mobile market.
The mobile market is expected the fastest to grow, accounting for $2 billion of the market in 2021.
Technology companies like Apple and Samsung are leading the charge in this arena, too.
Apple’s new $1 a unit iPhone SE is the best-selling device in the United States in 2020.
Samsung has been selling smartphones for years at a premium price, but the company has recently become a leader in the home automation market.
Samsung, which owns smart home appliances maker Samsung Home, is also expected to take a larger share of the next-generation home appliances market, according Pescavitz.
“The consumer is now buying these products at a much higher price point than ever before,” Pescvitz said.