Independent 5-year Consumer Electronics Industry Forecasts for Israel

Israel’s consumer electronics devices market, defined as the addressable market for computing devices, mobile handsets and AV products, is forecast at around US$3.5bn in 2012. Spending is expected to grow at a CAGR of 7% to US$4.5bn by 2016, driven by growing popularity of feature-rich digital products such as LCD TV sets, notebook computers and other devices as well as a growing population and expanding PC penetration.

Analysts believe the consumer electronics market will continue its rebound going forward. Consumer confidence appears to have been restored, and the employment situation bodes well for consumption, especially as real wages have risen. Purchases of consumer durables such as TV sets and PCs surged and handset revenues grew strongly in 2011 due to regulatory changes and growing demand for smartphones and 3G handsets.

Computers
Computer hardware accounted for around 74% of Israeli consumer electronics spending in 2011, due to demand from key verticals such as government and military. Notebooks remained the main growth driver in 2011 while tablets provided a new growth area. The current rate of PC penetration, while high for the region, represents potential for organic growth. Computer hardware CAGR for the 2012-2016 period is forecast at about 6%, driven by sales of notebooks and tablets.

AV Devices
AV devices accounted for around 15% of Israeli consumer electronics spending in 2011. In 2012, Israel’s domestic AV device market is projected at US$515mn. The market is expected to grow at a CAGR of 15% from 2012-2016 to a value of US$665mn, with drivers including the launch of digital TV services.

Mobile Handsets
Mobile handset sales accounted for around 10% of Israel’s consumer electronics spending in 2010. Following strong demand for smartphones in 2011, Israel’s market handset sales are expected to grow at a CAGR of 10% to US$561mn in 2016, with mobile subscriber penetration flat at around 135%. As operators launch a variety of new devices and services to encourage data use, sales will be dominated by the replacement market, with growing demand for smartphones, and 3G handsets.

TABLE OF CONTENTS

Executive Summary
Computers 5
AV Devices . 6
Mobile Handsets  6

SWOT Analysis
Israel Consumer Electronics Market SWOT  7
Israel Political SWOT  8
Israel Economic SWOT  9
Israel Business Environment SWOT  10

Risk/Reward Ratings
Table: Middle East And Africa Risk/Reward Ratings, Q212  11

Market Overview
Table: Israel Distributors For Leading Brands . 16
Computers 17
Table: PC Sales, 2009-2016  17
AV Devices . 19
Table: Exports, 2009-2016  19
Mobile Handsets  21
Table: Mobile Communications, 2009-2016  21
Israel Cellular Operators And Technology  23

Consumer Electronics Industry
Table: ICT Overview, 2009-2016  26
Table: Exports, 2009-2016  26
Table: Manufacturing, 2009-2016 . 28

Industry Forecast Scenario
Consumer Electronics Market . 30
Table: Consumer Electronics Overview, 2009-2016  30

Industry Developments

Macroeconomic Forecast  
Table: Israel – Economic Activity  37

Competitive Landscape
Computer . 38
Handsets  39
AV  40

Company Profiles
Scailex Corporation . 42
ELSE  44
TowerJazz  46