BMI View: W e expect strong sales growth in the Philippine consumer electronics market over the medium term as incomes rise and device prices decline amidst intense vendor competition. We forecas t growth of 6.8 % in 2015 , a deceleration from 2014 as depreciation of the peso against the US dollar exerts a slight squeeze on household purchasing power in global markets . The medium term outlook is strong, with broad based economic growth, government spending and economic modernisation providing a stimulus supplementing technology trends such as demand for smartphones and tablets. 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.
Headline Expenditure Projections
Computer Sales: USD2.0bn in 2014 to USD2.1bn in 2015, +3.5% in US dollar terms. Peso depreciation expected to be a slight drag on demand in 2015, but over the medium term we expect a resurgence in notebook sales to add to growth momentum from the tablet market in as vendors tap the first-time buyer opportunity.
AV Sales: USD980mn in 2014 to USD1.0bn in 2015, +3.0% in US dollar terms. Forecast to again be the underperforming market segment as a result of price erosion in the TV set market and the cannibalisation cannibalisation of digital camera volumes by the proliferation of smartphone ownership.
Handset Sales: USD3.1bn in 2014 to USD3.4bn in 2015, +10.1% in US dollar terms. The handset market will again outperform in 2015, but growth will continue to slow as price pressures in the smartphone market squeeze overall market value growth even as sales grow rapidly.
| Smartphone Growth Potential A Target For Global And Local Vendors |
|Smartphone Market Forecast, 2013-2019|
| e/f = BMI estimate/forecast. Source: BMI |
The Philippines 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 Philippines.
BMI Research's Philippines 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 Philippines.
- Benchmark BMI's independent consumer electronics industry forecasts for Philippines to test other views - a key input for successful budgeting and strategic business planning in the Philippine consumer electronics market.
- Target business opportunities and risks in Philippines through our reviews of latest industry trends and major deals, projects and investments.
- Exploit the latest competitive intelligence with company SWOT analyses.
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.
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.