rates remained level, but inflation and unemployment rose. Though the Australian TCG market was in overall decline, there were pockets of solid growth. IT continued its positive trend, led by a recovery in mobile computing and wireless connectivity devices, while major domestic appliances (MDA) stabilised after a couple of consecutive periods of value decline. IT recovery fuelled by mobile The IT sector continued to grow in Q2, showing a two per cent value growth compared to the same period last year. The majority of segments within IT showed strong signs of recovery, with most recording value growth. After a long period of value decline, mobile computing, the largest category within IT, was flat year on year. With sales of mobile computing playing an important role in the sales of computer peripherals, this recovery is likely to have a positive impact on the IT sector as a whole. A key IT segment to show growth in Q2 was wireless range extenders. Typically used to boost wi-fi signal at home, strong sales of these products indicate an increasing usage and focus on wi-fi within Australian homes. Popularity of feature rich products After two consecutive periods of value decline, the MDA sector stabilised in the latest quarter. Higher priced, feature rich products added value to the MDA sector, with value growth surpassing volume growth during the quarter. Within the dryers market, heat pumps and condenser heating models were catalysts for growth. With an average price four times that of standard dryers, the demand for heat pump dryers had a very positive impact overall. Another area of note within MDA was the rangehoods segment. Canopy and cartridge rangehoods grew significantly, accounting for nearly a fifth of the spend on this segment. Smartphones slip into decline Q2 was a challenge for the telecoms sector, with smartphones recording their second ever value decline. The trend towards outright purchases continued, and for the first time ever, sales for smartphones purchased outright, or without any carrier attachment, outsold those purchased on prepay. Bigger screens also gained in popularity. Focusing specifically on new smartphones launched in the quarter, nearly 90 per cent of sales were generated from models with a screen size of 5” or larger. Large screen demand continues The value of the TV market continued its recovery in Q2. A slew of new ranges were released, heavily focused on super large screens, with a wide range of UHD/4K models (and a few curved) seeing strong initial sales. This continued shift towards premium TVs fuelled an overall average price increase. The average price for TVs reached its highest quarterly figure since Q3 2010. Interestingly, the impact of the FIFA World Cup – usually an event that generates an uplift in large screen TV sales – was minimal this year. The significant time difference between Australia and Brazil may have been a factor, but the general dominance of large screen TV sales in the past year or two also impacted on the ability of the industry to generate incremental sales. One of the stronger performing segments in recent times has been headphones, however, his segment experienced a significant slow down in growth, partly due to the plateauing of attachment categories, such as smartphones and tablets. A year on- ear decline in the number of models available for sale, after several quarters of strong growth, provides further evidence of a maturing category. Mild winter cools sales A relatively mild start to winter affected heating related categories within small domestic appliances (SDA), as electrical and gas heaters, as well as electric blankets, showed a decline on last year. Vacuum cleaners, the largest category within SDA, continued to grow, with higher priced handstick and robot sub-segments still driving overall vacuum market growth. Between them, these segments now account for more than a third of the vacuum cleaner market. Healthy products are also continuing to drive the SDA sector. Products such as low oil fryers and slow juicers suggest that consumers are willing to pay more than twice the price for kitchen appliances that promote health benefits. Market likely to remain flat 2014 has already seen periods of recovery for IT and consumer electronics, but pockets of opportunity have been overshadowed by decline elsewhere. The performance of the telecoms sector will play a large part in the overall health of the TCG market in the final quarters of the year. Expectations of a flat telecoms sector is likely to result in a flat performance for the TCG market as a whole.