2013-10-10 11:59:42 - New Consumer Goods research report from Business Monitor International is now available from Fast Market Research
View: The Hungarian consumer electronics market is forecast to achieve only moderate growth in 2013 in US Dollar terms, as spending remains constrained by the weak economic environment. 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. However, there should be a few growth areas such as tablets, ultrabooks and smartphones. Even with these growth sub-segments of the market, overall the outlook is mixed as tablets are cannibalising sales of higher priced notebooks, while smartphone sales are also a threat to sales of digital cameras and MP3 players. As a result, even with an improving economy over the
medium term, we do not expect a significant acceleration in growth.
Full Report Details at
- www.fastmr.com/prod/689026_hungary_consumer_electronics_report_q ..
Headline Expenditure Projections
* Computer Hardware Sales: US$1.15bn in 2012 to US$1.21bn in 2013, an increase of 5.1%. We downgraded our forecast for market value as consumers are substituting the purchase of notebooks for lower cost tablets.
* AV Sales: US$789mn in 2012 to US$816mn in 2013, +3.4% 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 2013, +11.3% in US dollar terms. Demand for smartphones and operator subsidies are helping to support market growth despite the constraints on Hungarian consumers.
Key Trends And Developments
The smartphone market is developing rapidly, with smartphone penetration crossing 30% in H113. Devices running Google's Android OS have dominated the market in recent years by offering a wider range of specifications and price points compared to Apple, which had taken an early lead. However in 2013 there are indications of Windows Phone gaining growth momentum, and we believe Nokia has the potential to leverage its legacy brand strength in Hungary against attractive premium and mid-range devices and provide serious competition to the leading Android vendor - Samsung - which has dominated the market in recent years.
Credit is still tight throughout the economy and consumers continue to deleverage, putting pressure on markets for big-ticket items such as PCs. This, combined with competition from tablets, has resulted in a relatively steep drop-off in desktop and notebook sales. There is scope for medium-term resurgence in notebook sales through ultra-thin and hybrid/convertible devices - however in the short term tablets will outperform and continue to cannibalise notebook sales.
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-panel TV sets will be the main driver of AV category sales growth over our five-year forecast period to 2017 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, according to official data.
Report Table of Contents:
BMI Industry View
- BMI Industry View
- Business Environment
- Industry Forecast
- Table: Consumer Electronics Overview, 2010-2017
- Table: Magyar Telekom Pay-TV Subscriptions By Technology ('000) & Blended TV ARPU (HUF)
- Table: Wireline Developments, 2008-2013
- Macroeconomic Forecasts
- Table: Hungary - Economic Activity
Industry Risk Reward Ratings
- CEE Risk Reward Ratings
- Table: CEE Risk/Reward Ratings
- Market Overview
- Table: PC Sales, 2010-2017
- AV Devices
- Table: AV Sales, 2010-2017
- Mobile Devices
- Table: Mobile Communications, 2010-2017
- Competitive Landscape
- Mobile Handsets
Industry Trends And Developments
- Industry Trends And Developments
- Table: Electronics Output, 2010-2017
- Table: Computer, Electronic and Optical Products, National Sales Volume Index, 2011-2012
- 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, 2011-2012 (HUFmn)
- Regulatory Development
- Demographic Forecast
- 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
About Business Monitor International
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
About Fast Market Research
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