Israel has one of the most mature consumer electronics markets in the region, with smartphones accounting for the vast majority of handset sales, and a strong demand for computer devices within its vibrant startup market and from global IT and CE vendors that have set up research and development centres in the country. Tablet computers gained traction slightly later in Israel than in many other developed markets and we therefore expect them to be the key driver of computers sales over the medium term, before levelling off towards the end of our forecast period in 2018. This trend is further supported by the limited launch of 4G networks in H214, which we expect mobile operators to rapidly expand in 2015 following the conclusion of an LTE spectrum auction. We forecast average annual growth of around 3.9% in Israel's consumer electronics market over the five years to 2018 , though note that risks lie slightly to the downside owing to government austerity and a rise in regional tensions in 2014.
Computer hardware sales: USD2.24bn in 2014, up 4.1% y-o-y in US dollar terms. Rising tablet sales put pressure on notebooks, while desktop sales continue to be supported by robust defence and IT markets.
AV sales: USD562mn in 2014, up 5.6% in US dollar terms. Driven by sales of Sony and Microsoft gaming consoles and smart TVs.
Handset sales: Outperforming segment of the consumer electronics market, rising 9.4% to USD1.286mn in 2014, as the launch of LTE networks in H214 encourages upgrades to 4G-enabled handsets.
Key Trends And Developments
Israeli mobile operators Pelephone, Partner Communications and Cellcom all launched limited 4G networks between mid-July and early August 2014. Cellcom and Partner have re-farmed existing spectrum in the 1800MHz band to support their 4G network, while Pelephone has launched its network over spectrum on loan from the Ministry of Communications (MOC), pending a 4G spectrum...
TABLE OF CONTENTS
Industry View SWOT Political Economic Business Environment Industry Forecast Table: Consumer Electronics Overview (Israel 2012-2018) Macroeconomic Forecasts Economic Analysis Table: Economic Activity (Israel 2009-2018) Industry Risk Reward Ratings Table: MENA Consumer Electronics RRI Market Overview Computers Table: PC Sales (Israel 2012-2018) AV Devices Table: AV Sales (Israel 2012-2018) Mobile Devices Table: Mobile Communications (Israel 2012-2018) Regulatory Development Competitive Landscape International Companies Table: Intel Table: Apple Table: Samsung Electronics Table: Hewlett-Packard Local Companies Table: PointGrab Company Profile Scailex Corporation TowerJazz Demographic Forecast Table: Population Headline Indicators (Israel 1990-2025) Table: Key Population Ratios (Israel 1990-2025) Table: Urban/Rural Population & Life Expectancy (Israel 1990-2025) Table: Population By Age Group (Israel 1990-2025) Table: Population By Age Group % (Israel 1990-2025) Methodology Industry Forecast Methodology Sector-Specific Methodology Sources Risk/Reward Index Methodology Sector-Specific Methodology Table: Consumer Electronics Risk/Reward Index Indicators Table: Weighting Of Indicators