2013-12-27 10:01:34 - Fast Market Research recommends "South Africa Consumer Electronics Report Q1 2014" from Business Monitor International, now available
South Africa's consumer electronics market was buffeted by Macroeconomic headwinds in 2013, such as the weakening of the local currency, and a general decline in demand for PCs. However, we expect the market to rebound in 2014 on the back of greater stability in the domestic economy and higher wages. We expect the AV segment to perform strongly during, driven by the purchase of digital TV sets and set-top boxes in the run-up to the deadline for the switchover from analogue to digital broadcasting. We also forecast strong growth in the handset segment as phone users upgrade to smartphones to take advantage of greater 3G/4G network coverage and declining mobile data tariffs.
Headline Expenditure Projections
* PC Sales: US$3.6bn in 2013
to US$3.8bn in 2014, +6% in US dollar terms. Forecast in US dollar terms downgraded to reflect the impact of currency weakness and decline in demand for PCs.
* AV sales: US$1.5bn in 2013 to US$1.7bn in 2014, +10% in US dollar terms. Forecast in US dollar terms unchanged, with digital TV sets and set-top boxes expected to drive growth in 2014.
* Handset sales: US$1.6bn in 2013 to US$1.8bn in 2014. Forecast in US dollar terms unchanged, with smartphones the main revenue growth driver.
Full Report Details at
- www.fastmr.com/prod/754699_south_africa_consumer_electronics_rep ..
Risk/Reward Rating: South Africa's score was 53.6 out of 100, earning it 6th place in our RRR table. We expect rising penetration of consumer electronics devices such as smartphones and flat-screen TV sets. However, a large grey market and limited internet access outside major cities and towns pose downside risks to growth.
Key Trends & Developments
Leading AV products vendors introduced new high-end TV sets in 2013, targeting a niche segment of the market. LG launched the country's first curved OLED (organic light-emitting diode) television in November, while Samsung launched its 85-inch ultra high definition (UHD) TV in July. Both TV sets, along with similar high-spec models launched by other vendors, retail at ZAR200,000 or more.
In August 2013, technology firm Altech said it has invested around ZAR50mn (US$4.9mn) into the expansion of its manufacturing facility in Durban to meet continuing demand for terrestrial set-top boxes, satellite decoders and smart TVs. Altech is one of the leading local manufacturers keen to take advantage of the opportunities from the South Africa's digital migration. The company's investment is an endorsement of the significant growth potential in the STB market as the government takes steps to implement the analogue to digital switchover (ASO). Altech says its investment provides it with the capability to manufacture 6mn STBs a year. It is believed around 11mn households will need at least one STB. Although the government is yet to officially appoint STB manufacturers for the migration process, Altech is hopeful is will be selected eventually. The company has a few notable advantages in the STB market, including its local ownership and technical capabilities. However, it will face strong competition from local rivals, including Ellies. In the future, we expect South African STB manufacturers to expand their footprint across Africa as the implementation of the ASO takes off in the region.
Report Table of Contents:
BMI Industry View
- Business Environment
- Table: Consumer Electronics Overview
- Economic Activity
- Table: Real GDP Growth, % chg q-o-q, SAAR
- Table: South Africa - Economic Activity
Industry Risk Reward Ratings
- Table: Middle East And Africa CE RRR - Q1 2014
- Table: South Africa PC Market Growth, 2010 - 2017
- AV Devices
- Table: South Africa AV Devices Market Growth, 2010-2017
- Mobile Handsets
- Table: Mobile Handset Market Growth, 2010-2017
Industry Trends And Developments
- Table: Regulatory Authority
- International Companies
- Table: Samsung
- Table: Pinnacle Africa
- Table: Tarsus
- Amalgamated Appliances
- Sahara Computers
- Table: South Africa's Population By Age Group, 1990-2020 ('000)
- Table: South Africa's Population By Age Group, 1990-2020 (% of total)
- Table: South Africa's Key Population Ratios, 1990-2020
- Table: South Africa's Rural And Urban Population, 1990-2020
- Industry Forecast Methodology
- Sector-Specific Methodology
- Risk Reward Rating Methodology
- Sector-Specific Methodology
- Table: Consumer Electronics Risk Reward Ratings Indicators
- Table: Weighting Of Indicators
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