2013-10-07 17:13:33 - New Consumer Goods market report from Business Monitor International: "South Africa Consumer Electronics Report Q4 2013"
We retain our positive outlook for the South African consumer electronics market in 2013, but caution that the gloomy economic outlook as reflected by low business confidence, weaker than expected private consumption and rapid currency depreciation pose significant risks to our five-year growth forecast, through to 2017. The PC segment is the most vulnerable to a slowdown in consumer demand due to the adoption of new form factors such as smartphones and tablets. However, we expect the impact of any decline to be offset by rising government spending on IT-related products and services.
Full Report Details at
- www.fastmr.com/prod/689096_south_africa_consumer_electronics_rep ..
Headline Expenditure Projections
Computer hardware sales: US$5.4bn in 2012 to US$6.1bn in 2013, +12% in US dollar terms. Forecast in US dollar terms
unchanged, with the introduction of new products by traditional PC vendors sustaining demand for notebooks.
AV sales: US$1.4bn in 2012 to US$1.6bn in 2013, +9% in US dollar terms. Forecast in US dollar terms unchanged, with flat-screen TV sets expected to provide the most dynamic development.
Handset sales: US$2.1bn in 2012 to US$2.3bn in 2013, +13% in US dollar terms. Forecast in US dollar terms unchanged, with smartphones the main revenue growth driver.
Risk/Reward Rating: South Africa's score was 53.64 out of 100, earning it 6th place in our MEA CE 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
* In the 2013/14 budget presented to parliament, the Department of Communications (DoC), disclosed that it is ready to implement the Set-Top Box (STB) manufacturing strategy which requires 30% local content as part of the country's electronic industry development. Presently, Digital Terrestrial Television (DTT) services reach more than 80% of the population. The DoC expects this to reach 84% by December 2013. The remaining 16% not covered would be served by a Direct-To-Home (DTH) satellite broadcasting service to be launched by the broadcasting sector's signal distributor Sentech. The DTH service would provide TV and radio coverage to the Square Kilometre Array (SKA) and all other areas where is there is no DTT signal. The full implementation of the digital migration project is expected to cost the DoC around ZAR8bn over the two years to June 2015.
* According to the World Wide Worx, around 1.4mn tablets had been sold in South Africa by the end of June 2013, up from 960,000 at the end of 2012. Apple had a slight advantage over Samsung, with a market share of 45%. Samsung is in close second position with a market share of 38.9%, while Huawei is in distant third position with market share of just 5.3%.
Report Table of Contents:
BMI Industry View
- BMI Industry View
- Business Environment
- Industry Forecast
- Table: Consumer Electronics Overview
- Macroeconomic Forecasts
- Table: Real GDP Growth, % chg q-o-q, SAAR
- Table: South Africa - Economic Activity
Industry Risk Reward Ratings
- Middle East & Africa Risk/Reward Ratings
- Table: Middle East And Africa Risk/Reward Ratings
- Market Overview
- Table: Consumer Electronics Overview, 2010-2017
- AV Devices
- Table: AV: Demand, 2010-2017
- Mobile Handsets
- Table: Mobile Handsets: Demand, 2010-2017
Industry Trends And Developments
- Industry Trends And Developments
- Regulatory Development
- Table: Regulatory Authority
- Competitive Landscape
- AV Devices
- 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
- Electronics Industry
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