Our outlook for consumer electronics device spending growth in South Africa reflects a weak ening economic outlook, including rand depreciation against the US dollar. The erosion of South African household purchasing power in global markets will to some extent be offset by an increasing supply of low-cost smartphones and tablets as mobile operators encourage greater data usage by launching own-brand low -price devices. The popularity of smartphones launched by MTN and Vodacom highlight the potential for low-priced devices, although we believe there will be a steady demand for PCs and notebooks in the longer term as economic growth returns and large enterprise and government spending return to stronger levels.
Headline Expenditure Projections
PC Sales: USD2.2bn in 2014 to USD2.0bn in 2015. Forecast downgraded to reflect the weaker economic outlook, with the impact of rand depreciation and price pressures in the PC market as competition from low-cost tablets intensifies particularly important factors.
AV Sales: USD1.1bn in 2014 to USD1.0bn in 2015. Digital camera demand cannibalisation will continue to be a drag on growth, while TV set market has a mixed outlook due to considerable scope for upgrades, but also intensifying price competition.
Handset Sales: USD3.6bn in 2014 to USD3.7bn in 2015. Handset sales growth expected to outperform again in 2015 as the base of smartphone ownership continues to widen, with positive impact on overall handset average selling price.
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TABLE OF CONTENTS
BMI Industry View SWOT Consumer Electronics SWOT Political Economic Operational Risk Industry Forecast Table: Consumer Electronics Overview (South Africa 2013-2019) Macroeconomic Forecasts Economic Analysis Table: Economic Activity (South Africa 2010-2019) Industry Risk Reward Index Table: MEA Consumer Electronics Risk/Rewards Index, Q315 Market Overview Computers Table: PC Sales (South Africa 2013-2019) AV Devices Table: AV Sales (South Africa 2013-2019) Mobile Handsets Table: Mobile Communications (South Africa 2013-2019) Competitive Landscape International Company Table: Samsung Local Companies Table: Pinnacle Africa Table: Tarsus Industry Trends And Developments Regulatory Development Table: Regulatory Authority Demographic Forecast Demographic Outlook Table: Population Headline Indicators (South Africa 1990-2025) Table: Key Population Ratios (South Africa 1990-2025) Table: Urban/Rural Population & Life Expectancy (South Africa 1990-2025) Table: Population By Age Group (South Africa 1990-2025) Table: Population By Age Group % (South Africa 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