Independent 5-year Consumer Electronics Industry Forecasts for Philippines

The Philippines’ consumer electronics devices market, defined as the addressable market for computing devices, mobile handsets and AV products, is projected to be worth around US$4.5bn in 2011. Demand likely to remain strong in the coming quarters, boosted by supportive domestic economic conditions and continued growth in remittance inflows. Researchers project that the Philippine consumer electronics market will grow at a compound annual growth rate (CAGR) of 7% to US$5.9bn by 2015, driven by rising household penetration of PCs (less than 20% currently) and LCD TV sets.

Demand in the AV and mobile categories is expected to strengthen in 2011, in line with analysts' prediction of continuing strong growth in domestic demand. Much growth is projected to come from areas outside Metro Manila. Given the Philippines’ low PC penetration, many provincial markets are relatively untapped territories, while rural populations contain the largest
number of potential first-time mobile handset purchasers. Vendors will seek profits from product innovation such as smartphones based on the Android operating system, and 3D and LED TV sets.

Computers

Computers accounted for around 42% of Philippine consumer electronics spending in 2010. Researchers forecast Philippine domestic market computer hardware sales (including notebooks and accessories) of US$1.9bn in 2011, up from US$1.7bn in 2010. Computer hardware CAGR for the 2011-2015 period is forecast at about 11%, with much growth coming from increasing PC penetration, which is less than 10% currently.

AV

AV devices accounted for around 16% of Philippine consumer electronics spending in 2010. The Philippine domestic AV device market is projected at US$700mn in 2011. The market is expected to grow at a CAGR of 10% during 2011-2015 to a value of US$1.0bn in 2015. The main driver will be demand for LCD TV sets in the Philippines’ 9mn TV household market.

Mobile Handsets

Mobile handset sales will account for around 42% of Philippine consumer electronics spending during a five-year forecast period. Philippine market handset sales are expected to grow at a CAGR of 8% to 15.8mn units in 2015, as mobile subscriber penetration reaches 122%, although a proposed tax on texting could restrain growth. Sales will be dominated by lower priced mass market phones, but the Philippines is viewed as a promising market for smartphones. Demand for models based on Android was boosted by a series of new product launches in Q410.

TABLE OF CONTENTS

Executive Summary  

SWOT Analysis  
Philippines Consumer Electronics Market SWOT  
Philippines Electronics Industry SWOT  
Philippines Political SWOT  
Philippines Economic SWOT  
Philippines Business Environment SWOT

Market Overview  
Computers
Table: Computers: Demand, 2008-2015
Drivers  
Segments
AV
Table: AV: Demand, 2008-2015
Mobile Handsets
Table: Mobile Handsets: Demand, 2008-2015

Consumer Electronics Industry  
Table: Electronics Output, 2008-2015
Semiconductors And Components
Computers
AV
Telecommunications

Industry Forecast Scenario
Table: Consumer Electronics Overview, 2008-2015

Industry Developments
IT Education Agenda  

Macroeconomic Forecast  
Table: Philippines - Economic Activity, 2008-2015  

Competitive Landscape  
Computer  
Handsets
AV