South Africa Consumer Electronics Report

Published 29 May 2015

  • 80 pages
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  • Includes 3 free updated quarterly reports
$1,295.00
South Africa Consumer Electronics Report

BMI View: We downgraded the outlook for consumer electronics device spending growth in South Africa in the Q315 due to a weaker 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 in Q315 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.

Key Trends And Developments

The smartphone market has been the outperforming sub-segment of South Africa's consumer electronics market as volumes have boomed. BMI estimates a total of 11.140mn smartphones were sold in 2014 in South Africa, an increase of 22.8% from 2013. We base this calculation on a smartphone penetration rate of 51.4% of adults aged 15+ at end-2014, equating to an installed base of 19.3mn smartphones. This...

BMI Industry View
7
SWOT
9
Consumer Electronics SWOT
9
Political
11
Economic
12
Operational Risk
13
Industry Forecast
15
Table: Consumer Electronics Overview (South Africa 2013-2019)
15
Macroeconomic Forecasts
21
Economic Analysis
21
Table: Economic Activity (South Africa 2010-2019)
26
Industry Risk Reward Ratings
27
Table: MEA Consumer Electronics Risk/Rewards Index, Q315
30
Market Overview
31
Computers
31
Table: PC Sales (South Africa 2013-2019)
31
AV Devices
39
Table: AV Sales (South Africa 2013-2019)
39
Mobile Handsets
47
Table: Mobile Communications (South Africa 2013-2019)
47
Industry Trends And Developments
56
Regulatory Development
59
Table: Regulatory Authority
59
Competitive Landscape
60
International Company
60
Table: Samsung
60
Local Companies
61
Table: Pinnacle Africa
61
Table: Tarsus
62
Company Profile
63
Mustek
63
Sahara Computers
67
Demographic Forecast
70
Demographic Outlook
70
South Africa Consumer Electronics Report Q3 2015
South Africa Consumer Electronics Report Q3 2015
- Business Monitor International Ltd Page 4
- Business Monitor International Ltd Page 4
Table: Population Headline Indicators (South Africa 1990-2025)
71
Table: Key Population Ratios (South Africa 1990-2025)
71
Table: Urban/Rural Population & Life Expectancy (South Africa 1990-2025)
72
Table: Population By Age Group (South Africa 1990-2025)
72
Table: Population By Age Group % (South Africa 1990-2025)
73
Methodology
75
Industry Forecast Methodology
75
Sector-Specific Methodology
76
Sources
76
Risk/Reward Index Methodology
77
Sector-Specific Methodology
78
Table: Consumer Electronics Risk/Reward Index Indicators
78
Table: Weighting Of Indicators
79

The South Africa 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 South Africa.

BMI Research's South Africa 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 South Africa.

Key Benefits

  • Benchmark BMI's independent consumer electronics industry forecasts for South Africa to test other views - a key input for successful budgeting and strategic business planning in the South African consumer electronics market.
  • Target business opportunities and risks in South Africa 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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