2013-03-14 10:45:14 - New Consumer Goods research report from Business Monitor International is now available from Fast Market Research
The Hungarian consumer electronics market is in no position to enjoy a recovery in 2013, with overall demand expected to be flat in US dollar terms, although there should be a few growth areas such as tablets, ultrabooks and smartphones. The Hungarian consumer faces yet another tough year, as fiscal austerity, tighter credit conditions, weakening confidence, a still-large overhang of debt and elevated unemployment levels all pose major challenges to households. The weak forint in H113 is another constraint on demand for imported consumer electronics products. However, the consumer electronics market still has considerable latent growth potential. Home computer penetration remains low compared with peer group countries for example - only slightly higher than Romania and Bulgaria - while internet
penetration is also relatively low as a percentage of households.
Full Report Details at
- www.fastmr.com/prod/552310_hungary_consumer_electronics_report_q ..
Headline Expenditure Projections
* Computer Hardware Sales: US$1.3bn in 2012 and remains US$1.3bn in 2013, with flat growth in US dollar terms. Forecast in US dollar terms upwardly revised due to analyst adjustment and faster growth expected after 2013 and Windows 8 and 4G/LTE mobile service rollouts could provide a boost to sales of tablets, ultrabooks and notebooks.
* AV Sales: US$789mn in 2012 to US$816mn in 2013, +3% in US dollar terms. Forecast in US dollar terms unchanged but growing penetration of digital TV is driving demand for flat-screen TV sets.
* Handset Sales: US$355mn in 2012 to US$395mn in 2012, +15% in US dollar terms. Forecast in US dollar terms upwardly revised due to analyst adjustment and operator promotions are driving sales of smartphones.
Risk/Reward Rating: Hungary's score was 45.5 out of 100.0. Hungary took 5th place in our latest RRR table, behind the Czech Republic and Poland, but still ahead of emerging markets Bulgaria, Serbia and Croatia.
Key Trends And Developments
Telecoms operators have reported solid growth in mobile broadband subscriptions and this trend should help to support sales of mobile connectivity devices such as tablets and notebooks, which are bundled with service contracts. The launch of LTE services will provide a further boost, with a number of LTE-enabled models reaching the market in H412. Credit is still tight throughout the economy however, and should the forint depreciate significantly further, consumers would be subject to considerable pressure, which in turn would depress spending.
While about 99% of Hungarian households have TV sets, there is a trend for multiple sets, with half of households having at least two sets. Flat-screen TV sets will be the main driver of AV category sales growth over the forecast period as consumers upgrade and trade their old models for digital. The market for analogue TV sets has collapsed dramatically over the last few years, coinciding with the economic crisis. Meanwhile the number of digital television subscriptions in Hungary is steadily increasing and rose to 712,000 in February 2012, according to official data.
Demand for smartphones and higher-end models should mitigate handset revenue stagnation, despite the slowing subscriber growth rate. Operators will drive the market for smartphones as they introduce new models to attract high-end subscribers and boost data usage. However promotions and discounts on handsets will restrain revenue growth.
Report Table of Contents:
BMI Industry View
- Business Environment
- Table: Consumer Electronics Overview, 2010-2017
- Economic Analysis
- Table: HUNGARY - ECONOMIC ACTIVITY
Industry Risk Reward Ratings
- Europe Risk/Reward Ratings
- Eurozone Crisis Eases Risk Outlook
- Table: CEE Consumer Electronics Risk/Reward Rating, Q213
- Table: PC Sales, 2010-2017
- AV Devices
- Table: AV Sales
- Mobile Devices
- Table: Mobile Communications, 2010-2017
- Mobile Handsets
Industry Trends And Developments
- Table: Electronics Output, 2010-2017
- Table: Computer, Electronic and Optical Products, National Sales Volume Index, March 2011-Feb 2012
- Table: Hungary Industrial Parks And Resident IT/Electronics Companies
- Table: Restructuring Plans Of Major IT/Electronics Companies In Hungary
- Table: Electronics Output By Segment, 2010-2017
- Table: Foreign Direct Investment By Asian LCD TV Set Manufacturers In Hungary
- Table: Hungarian Exports of Office Machines And Automatic Data Machines, YTD, March 2011 - Feb 2012 (HUFmn)
- Demographic Outlook
- Table: Hungary's Population By Age Group, 1990-2020 ('000)
- Table: Hungary's Population By Age Group, 1990-2020 (% of total)
- Table: Hungary's Key Population Ratios, 1990-2020
- Table: Hungary's Rural And Urban Population, 1990-2020
- Electronics Industry
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