China Consumer Electronics Report

Published 20 August 2015

  • 75 pages
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  • Includes 3 free updated quarterly reports
$1,295.00
China Consumer Electronics Report

BMI View: W e downgraded the growth outlook for China's consumer electronics market in Q415 to reflect the slightly weaker economic outlook and the diminished growth prospects as a result of rapid rises in device penetration rate in several key categories such as smartphones, tablets and LCD/LED TV sets over recent years. As a result of relatively high device penetration rates in the context of China's GDP per capita, a product of the strong base of local manufactures right across the device spectrum, medium term growth will underperform the growth trajectory 2011-2014. Nonetheless the sheer scale of the market makes it central to vendor strategies and we believe there is scope for vendors to capitalise on economic trends to increase performance. For instance, broad based income growth and the boost from the package of economic and social reforms announced by the government in late 2013 should boost consumption over the medium - term and allow vendors to target higher margin premium device sales growth.

Headline Expenditure Projections

  • Computer hardware sales: USD78.3bn in 2014 to USD75.8bn in 2015, -3.2% in US dollar terms. Weaker than expected demand for notebooks and tablets reported by retailers in H115 resulted in a downgrade to the 2015 outlook.

  • AV sales: USD31.0bn in 2014 to USD30.1bn in 2015, -2.8% in US dollar terms. Forecast downgraded in the Q4 update, but we continue to highlight significant upside in the games console market following the removal of the 15-year ban on the sale of such devices in China in July 2015.

  • Handset sales: USD97.0bn in 2014 to USD100.5bn in 2015, +3.6% in US dollar terms. Smartphone market saturation means growth will decelerate from 2014, but despite this we expect handset sales to remain the outperforming device category again in 2015.

Saturation Sees Growth Slow But Premium Opportunties Set To Broaden
China Consumer Electronics Spending By Segment
e/f = BMI estimate/forecast. Source: BMI
BMI Industry View
7
SWOT
9
Political
11
Economy
12
Operational Risk
13
Industry Forecast
15
Table: Consumer Electronics Overview (China 2013-2019)
15
Macroeconomic Forecasts
21
Economic Activity
21
Industry Risk Reward Ratings
26
Industry Risk Reward Index
26
Table: Asia CE Risk/Reward Index - Q315
29
Market Overview
30
Computers
30
Table: PC Sales (China 2013-2019)
30
AV Devices
40
Table: AV Sales (China 2013-2019)
40
Mobile Handsets
48
Table: Mobile Communications (China 2013-2019)
48
Consumer Electronics Industry
59
Table: Computer Hardware Production, 2012-2019
60
Table: AV Production, 2012-2019
60
Table: Domestic Handset Production, 2011-2018
61
Competitive Landscape
62
International Companies
62
Table: Apple
62
Table: Foxconn (Hon Hai)
63
Local Companies
64
Table: TCL
64
Table: Founder Technology Group
65
Regulatory Development
66
Company Profile
72
Semiconductor Manufacturing International Corporation (SMIC)
72
Table: SMIC Revenue Breakdown (%)
74
Lenovo Group Ltd
77
Table: Revenue By Region (USDmn)
80
Table: Operating Margin By Region (%)
80
Table: Strategic Partnerships & Acquisitions
82
Demographic Forecast
84
Table: Population Headline Indicators (China 1990-2025)
85
Table: Key Population Ratios (China 1990-2025)
85
Table: Urban/Rural Population & Life Expectancy (China 1990-2025)
86
Table: Population By Age Group (China 1990-2025)
86
Table: Population By Age Group % (China 1990-2025)
87
Methodology
89
Industry Forecast Methodology
89
Sector-Specific Methodology
90
Sources
90
Risk/Reward Index Methodology
91
Sector-Specific Methodology
92
Table: Consumer Electronics Risk/Reward Index Indicators
92
Table: Weighting Of Indicators
93

The China Consumer Electronics Report has been researched at source and features latest-available data covering both the manufacture and sale of consumer electronics products, critically analysing - and forecasting - the market dynamics affecting each sub-sector, including audio-visual, computers, mobile handsets, gaming and automotives electronics. Furthermore, the report analyses the domestic and global economic trends driving device demand and provides company rankings and competitive landscapes covering leading multinational and national consumer electronics companies and analysis of latest industry news and trends in China.

BMI Research's China Consumer Electronics Report provides industry professionals and strategists, sector analysts, business investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the consumer electronics industry in China.

Key Benefits

  • Benchmark BMI's independent consumer electronics industry forecasts for China to test other views - a key input for successful budgeting and strategic business planning in the Chinese consumer electronics market.
  • Target business opportunities and risks in China through our reviews of latest industry trends and major deals, projects and investments.
  • Exploit the latest competitive intelligence with company SWOT analyses.

Coverage

BMI Industry View

Summary of BMI's key industry forecasts, views and trend analysis covering consumer electronics, major investments and projects.

Consumer Electronics Market

Analysis of the size of the domestic market for electronics products, with in-depth assessment and data covering the dynamics driving each sub-sector; audio-visual, computers, mobile phone handsets and gaming devices, as well as demand for automotives electronics.

Electronics Industry

Analysis and data of the domestic electronics manufacturing sector. We assess the regulatory and business operational issues facing manufacturers - including openness to foreign investment, infrastructure, IP issues and the global demand context - and their impact on the production of electronics goods, which is again broken down via market sub-sectors.

Industry Forecast Scenario

Historic data series and forecasts to end-2018 for all key industry and economic indicators (see list below), supported by explicit assumptions, plus analysis of key risks to the main forecast, covering computers, communications and gaming devices. Indicators include:

Industry value (US$bn); population (mn); nominal GDP (US$bn); real GDP growth (%), GDP per capita, industrial production Index (% y-o-y ave.) unemployment % of labour force.

Business Environment Rankings

BMI's Consumer Electronics Business Environment Rankings provide a country-comparative Risk-Reward Rankings index aimed at investors and participants in the regional consumer electronics market. The rankings methodology makes sophisticated use of over 40 industry, economic and demographic data points.

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