Independent 5-year Consumer Electronics Industry Forecasts for Bahrain

Bahrain’s consumer electronics devices market, defined as the addressable market for computing devices, mobile handsets and AV devices, is forecast at US$452mn in 2011. This is expected to increase to US$565mn by 2015, driven by demand for feature-rich digital lifestyle products such as LCD TV sets, notebook computers and other key products, as well as the ongoing development of the electronics retail sector.

Bahraini demand for AV products continued to grow in H111, despite the political disturbances. Ongoing political unrest could deter investors while the rise in global oil prices that has accompanied the disturbances will provide a boost to Bahrain's finances. Going forward, product innovation, lower prices and greater vendor and channel sales flexibility will drive growth in consumer electronics spending, along with a resumption of low single-digit population growth from 2011.

Computers

Computer hardware accounted for around 48% of Bahraini consumer electronics spending in 2010. Analysts forecast Bahraini domestic market computer sales (including notebooks and accessories) of US$212mn in 2011, up from US$206mn in 2010. Computer hardware compound annual growth rate (CAGR) for the 2011-2015 period is forecast at about 8%, led by notebooks and netbooks, which currently account for about 60% of sales. Since 2009, Bahraini fixed and mobile telecoms operators have launched a series of services and promotions targeted at PC users.

AV Devices

AV devices accounted for around 39% of Bahraini consumer electronics spending in 2010. The Bahraini addressable AV device market is forecast at US$165mn in 2011. The market is expected to grow at a CAGR of 3% during 2011-2015, driven largely by demand for LCD and plasma TV sets, to a value of US$184mn in 2015. In the current economic climate, Bahraini consumers are looking for highend features and performance at more affordable prices.

Mobile Handsets

Mobile handset sales accounted for around 15% of Bahraini consumer electronics spending in 2010. Bahraini market handset revenues are expected to grow at a CAGR of 4% to US$88mn in 2015, as the launch of commercial services by STC helps stimulate competition in the mobile sector, despite penetration of over 200%. There will be growing demand for smartphones and 3G handsets, with the increased rollout of 3G networks and the launch of BlackBerry services by Zain and new operator VIVA.

TABLE OF CONTENTS

Executive Summary
Computers. 5
AV Devices  6
Mobile Handsets . 6

SWOT Analysis
Bahrain Consumer Electronics Market SWOT . 7
Bahrain Political SWOT . 8
Bahrain Economic SWOT . 9
Bahrain Business Environment SWOT  9

Market Overview  
Computers. 14
Table: PC Sales  14
AV . 17
Table: AV Sales  17
Mobile Handsets . 20
Table: Mobile Communications  20

Consumer Electronics Industry  
Table: Bahrain Distributors For Leading Brands. 27

Industry Forecast Scenario
Consumer Electronics Market  28
Table: Consumer Electronics Overview  29
Government Initiatives  30

Macroeconomic Forecast  
Table: Bahrain - Economic Activity, 2008-2015 . 34

Competitive Landscape  
Computer  36
Handsets . 38
AV . 40

Company Profiles
Axiom Telecom . 42
Jumbo Electronics  44
Eros Group . 46