2013-02-20 05:29:28 - New Consumer Goods market report from Business Monitor International: "Saudi Arabia Consumer Electronics Report Q1 2013"

BMI View: Saudi consumer electronics spending will grow by about 5% in US dollar terms during 2013, powered by buoyant domestic consumption. In 2013, wage hikes and government largesse should continue to provide a boon for consumer electronics sales. Demand in 2012 was supported by a favourable trading environment with Saudi King Abdullah's US$93bn in handouts, including wage increases, supporting spending on big-ticket lifestyle products such as smartphones and flat-screen TV sets. Over BMI's five-year forecast period, Saudi Arabia is forecast to be one of the strongest economies in the MENA region, and the country will continue to be a lucrative market for consumer electronics.

Headline Expenditure Projections

Computer Hardware Sales: US$2.1bn in 2012 to US$2.2bn in 2013, +2% in US dollar

terms.Forecast in US dollar terms downwardly revised owing to lower than expected PC sales growth in H112.

AV Sales: US$3.2bn in 2012 to US$3.4bn in 2013, +7% in US dollar terms. Forecast in US dollar terms unchanged, with flat-screen TV set sales the main growth area.


Full Report Details at
- www.fastmr.com/prod/536562_saudi_arabia_consumer_electronics_rep ..


Handset Sales: US$1.1bn in 2012 to US$1.2bn in 2013, +8% in US dollar terms. Forecast in US dollar terms unchanged, but with higher demand for smartphones and 3G handsets

Risk/Reward Rating:

Saudi Arabia's score was 55.8 out of 100.0, which despite being unchanged from the previous quarter saw it rise to 5th place in our latest MEA CE RRR table, up from 7th in Q312. Given its undoubted importance in the Gulf market, and continued growth potential, Saudi Arabia will remain a priority market for vendors.

Key Trends & Developments

* Saudi Arabia's oil-rich economy has created a booming market for new consumer electronic products. Youthful population demographics, a regional economic boom and a buoyant real estate sector will all drive retail growth over the next five years. Saudi electronics retailers are reporting high footfall and strong demand for consumer electronics products, stimulated by a range of promotions on leading brands. Items in demand include smartphones and flat-screen TV sets, with screen sizes of more than 42 inches.
* Trading conditions should remain favourable for retail sales of handsets. Vendors expect good sales of smartphones. Mobile subscriber penetration is forecast to pass 220% by 2017, so sales will largely be driven by the replacement market. Smartphones based on the Android operating system are expected to remain a growth area and drive the market. Android is now the most popular operating system in the Middle East ahead of RIM and Symbian.
* BMI sees PC penetration rising to 35% as the consumer PC segment holds up relatively well. PC vendors and retailers will look to tablets, lower-cost ultrabooks, and the release of Microsoft's Windows 8 operating system to provide a boost to sales. Tablets should remain a growth area with new releases, the continuing preference for mobility and expanded high-speed broadband availability driving uptake.

Report Table of Contents:

BMI Industry View
SWOT
- Political
- Economic
- Business Environment
Industry Forecast
- Consumer Electronics Market
- Table: Table: Consumer Electronics Overview, 2010-2017
- Government Initiatives
Industry Risk Reward Ratings
- Industry Rewards
- Country Rewards
- Industry Risks
- Country Risks
- Table: Middle East And Africa IT Risk Reward Ratings, Q113
Market Overview
- Table: Table: Computers: Demand, 2009-2017
- Table: Table: AV Demand, 2010-2017
- Mobile Handsets
- Table: Table: Mobile Handsets Demand, 2009 - 2017
Market Overview
- Table: Table: Saudi Arabia's Distributors For Leading Brands
Competitive Landscape
- Computers
- Handsets
Company Profile
- IBM
- Hewlett-Packard
- Microsoft Corporation
Regional Overview
- Regional IT Overview
- IT Penetration
- Market Growth And Drivers
- Sectors And Verticals
Methodology
- Methodology
- Electronics Industry
- Sources
Demographic Forecast
- Saudi Arabia Demographic Data
- Table: Saudi Arabia's Population By Age Group, 1990-2020 ('000)
- Table: Saudi Arabia's Population By Age Group, 1990-2020 (% of total)
- Table: Saudi Arabia's Key Population Ratios, 1990-2020
- Table: Saudi Arabia's Rural And Urban Population, 1990-2020

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Business Monitor International (BMI) offers a comprehensive range of products and services designed to help senior executives, analysts and researchers assess and better manage operating risks, and exploit business opportunities, across 175 markets. BMI offers three main areas of expertise: Country Risk BMI's country risk and macroeconomic forecast portfolio includes weekly financial market reports, monthly regional Monitors, and in-depth quarterly Business Forecast Reports. Industry Analysis BMI covers a total of 17 industry verticals through a portfolio of services, including in-depth quarterly Country Forecast Reports. View more research from Business Monitor International at www.fastmr.com/catalog/publishers.aspx?pubid=1010

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