2012-11-12 12:24:23 - New Consumer Goods research report from Business Monitor International is now available from Fast Market Research

BMI projects that Argentine consumer electronics spending will grow by about 7% in US dollar terms in 2012 to US$5.8bn, with our headline forecast unchanged despite an uncertain economic outlook. We still expect sales of mobile handsets, plasma TV sets, digital cameras and other categories of consumer electronics products to grow in 2012, as monetary and fiscal policies remain highly expansionary.

However, there will likely be a moderation compared with the situation in 2011, as the government's continued fiscal support to household incomes may not be sustainable. Meanwhile the tax on 'luxury goods' such as mobile phones and digital cameras has dramatically boosted the share of local production in Argentine market sales, while sales of imported consumer electronics devices have fallen

sharply.

Headline Expenditure Projections


Full Report Details at
- www.fastmr.com/prod/499716_argentina_consumer_electronics_report ..


Computer hardware sales: US$2.6bn in 2011 to US$2.8bn in 2012, +7% in US dollar terms. Forecast in US dollar terms upwardly revised due to analyst modification following solid growth in Q112 as domestic PC production continues to increase.

AV sales: US$2.4bn in 2011 to US$2.5bn in 2012, +5% in US dollar terms. Forecast in US dollar terms unchanged, with LED-backlit TV sets expected to provide the most dynamic development.

Handset sales: US$471mn in 2011 to US$527mn in 2012, +12% in US dollar terms. Forecast in US dollar terms unchanged, with smartphones the main revenue growth driver.

Risk/Reward Ratings: Argentina's score was 43.9 out of 100.0, putting it in 7th place in our latest Americas RRR table. BMI expects rising penetration of consumer electronics devices such as smartphones and flat-screen TV sets, but government policies will constrain the opportunity for foreign vendors.

Key Trends & Developments

* The consumer electronics competitive landscape has been influenced by changes to the tax code. The introduction in 2010 of a luxury goods tax on imports of electronic items, from which the electronics production hub of Tierra del Fuego is exempted, has provided a significant boost to local production of mobile phones, PCs, TV sets, and other electronic goods. Local production of mobile phones is projected to comprise up to 90% of domestic handset sales in 2012. Meanwhile production of PCs reached 3.38mn units in 2011, while sales of imported devices such as Apple's iPad have fallen dramatically.
* The digital TV market in Argentina should grow in corollary with the government's implementation of aUS$2bn plan for open digital TV in the country. The government has set a deadline of 2018 for completion of the country's migration to digital TV broadcasting. By H112, two years after launching its digital TV initiative, Argentina's digital TV network reached 75% of the population, according to government figures. Argentina now has 50 digital TV stations deployed across the country.
* All operators report demand for smartphones is high, and value-added services are driving revenue upwards. Sales of smartphones boomed in 2011 and were estimated by BMI at about 2.7mn units, higher than previously believed. BMI projected that smartphones would comprise around 24% of Argentine handset sales, up from around 10% in 2010. Mobile telecoms operator Personal reported that users of smartphones increased by 110% in 2010 and estimated that smartphones currently account for around 16% of the mobile handset market. Operator handset subsidies helped expand the market beyond the corporate segment.

Report Table of Contents:

SWOT Analysis
- Argentina Consumer Electronics Market SWOT
- Argentina Political SWOT
- Argentina Economic SWOT
- Argentina Business Environment SWOT
Americas Risk/Reward Ratings
- Table: Americas Risk/Reward Ratings, Q412
Consumer Electronics Market
- Computers
- Table: PC Sales, 2009-2016
- AV Devices
- Table: AV Sales, 2009-2016
- Mobile Handsets
- Table: Mobile Communications, 2009-2016
Consumer Electronics Industry
- Table: Argentine Electronics Industry - Key Product Output (mn), 2011
- Computers
- AV
- Table: AV Products Domestic Output ('000), 2005-2011
- Mobile Handsets
- Table: Mobile Handset Domestic Output ('000), 2005-2011
Industry Forecast Scenario
- Consumer Electronics Market
- Table: Consumer Electronics Overview, 2009-2016
Industry Developments
Macroeconomic Forecast
- Table: Economic Activity, 2011-2016
Competitive Landscape
- Computers
- Handsets
- AV
Company Profiles
- Sicsa
Country Snapshot
- Table: Argentina's Population By Age Group, 1990-2020 ('000)
- Table: Argentina's Population By Age Group, 1990-2020 (% of total)
- Table: Argentina's Key Population Ratios, 1990-2020
- Table: Argentina's Rural And Urban Population, 1990-2020
BMI Methodology
- How We Generate Our Industry Forecasts
- Electronics Industry
- Sources

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