Independent 5-year Consumer Electronics Industry Forecasts for South Africa

South Africa’s consumer electronics devices market, defined as the addressable market for computing devices, mobile handsets and video, audio and gaming products, is projected at US$7.5bn in 2011. This expected to increase to US$12.1bn by 2015, driven by demographics, product innovation, rising incomes and rising computer penetration. With no real signs of a rapid turnaround in unemployment or consumer spending, many consumers will remain cautious, despite continued low interest rates. There were fears that the consumer recovery could prove fragile in 2011, with higher household indebtedness and rising unemployment acting as restraints on growth. Vendors will focus increasingly on more affluent consumers and new high-end product categories such as smartphones and 3D TV.

Computers

Computer hardware accounted for about 61% of South African consumer electronics spending in 2010. Researchers project South African domestic market computer hardware sales of US$4.7bn in 2011, up from US$4,2bn in 2010. Computer hardware’s compound annual growth rate (CAGR) for 2011-2015 is forecast at about 12% as a result of rising computer penetration, falling prices and vendor and retailer promotions.

AV

Audio/video (AV) devices accounted for about 17% of South Africa’s consumer electronics spending in 2009. South Africa’s domestic AV device market is projected at US$1.3bn in 2011. This market is also expected to grow at a CAGR of 9% between 2011 and 2015, to a value of US$2.0bn, driven by new technologies and digital TV transition, which is due to be completed by 2015. Sales of LCD and Plasma TV sets were reported by retailers to be up by as much as 50% ahead of the start of the FIFA World Cup tournament in June 2010, but electronics retailers reported that an overall strong recovery in sales had failed to materialise.

Mobile Handsets

Mobile handset sales accounted for 20% of South Africa’s consumer electronics spending in 2010. South African handset sales are expected to grow at a CAGR of 4% to US$1.8bn by 2015, when mobile subscriber penetration is expected to be around 100%. The replacement market will be increasingly important and demand for 3G handsets has exceeded expectations, while lower prices have boosted sales of smartphones.

TABLE OF CONTENTS

Executive Summary  
Computers
AV
Mobile Handsets

SWOT Analysis  
South Africa Consumer Electronics Market SWOT
South Africa Political SWOT
South Africa Economic SWOT
South Africa Business Environment SWOT

Business Environment Ratings  

Consumer Electronics Market
Computers
Table: Consumer Electronics Overview
AV
Table: AV: Demand  
Mobile Handsets
Table: Mobile Handsets: Demand  

Consumer Electronics Industry  
Computers
AV
Table: South African Distributors For Leading Brands

Industry Forecast Scenario
Consumer Electronics Market  
Table: Consumer Electronics Overview  
Government Authorities  

Industry Developments

Macroeconomic Forecast  
South Africa – Economic Activity

Competitive Landscape
Computers
Handsets
Table: Nokia Mobile Devices Volume
AV

Company Profiles
Amap
Sahara Computers