Argentina Consumer Electronics Report Q4 2012
- ID: 2258563
- October 2012
- Region: Argentina
- 64 pages
- Business Monitor International
The Argentina Consumer Electronics Report provides industry professionals and strategists, corporate analysts, electronics associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on Argentina's consumer electronics industry..
BMI projects that Argentine consumer electronics spending will grow by about 7% in US dollar terms in 2012 to US$5.8bn, with our headline forecast unchanged despite an uncertain economic outlook. We still expect sales of mobile handsets, plasma TV sets, digital cameras and other categories of consumer electronics products to grow in 2012, as monetary and fiscal policies remain highly expansionary.
However, there will likely be a moderation compared with the situation in 2011, as the government's continued fiscal support to household incomes may not be sustainable. Meanwhile the tax on ‘luxury goods’ such as mobile phones and digital cameras has dramatically boosted the share of local production in Argentine market sales, while sales of imported consumer electronics devices have fallen sharply.
Headline Expenditure Projections:
Computer hardware sales: US$2.6bn in 2011 to US$2.8bn in 2012, +7% in US dollar terms. Forecast in US dollar terms upwardly revised due to analyst modification following solid growth in Q112 as domestic PC production continues to increase.
AV sales: US$2.4bn in 2011 to US$2.5bn in 2012, +5% in US dollar terms. Forecast in US dollar terms unchanged, with LED-backlit TV sets expected to provide the most dynamic development.
Handset sales: US$471mn in 2011 to US$527mn in 2012, +12% in US dollar terms. Forecast in US dollar terms unchanged, with smartphones the main revenue growth driver.
Argentina’s score was 43.9 out of 100.0, putting it in 7th place in our latest Americas RRR table. BMI expects rising penetration of consumer electronics devices such as smartphones and flat-screen TV sets, but government policies will constrain the opportunity for foreign vendors.
Key Trends & Developments:
- The consumer electronics competitive landscape has been influenced by changes to the tax code.
The introduction in 2010 of a luxury goods tax on imports of electronic items, from which the electronics production hub of Tierra del Fuego is exempted, has provided a significant boost to local production of mobile phones, PCs, TV sets, and other electronic goods. Local production of mobile phones is projected to comprise up to 90% of domestic handset sales in 2012.
Meanwhile production of PCs reached 3.38mn units in 2011, while sales of imported devices such as Apple's iPad have fallen dramatically.
- The digital TV market in Argentina should grow in corollary with the government’s implementation of aUS$2bn plan for open digital TV in the country. The government has set a deadline of 2018 for completion of the country’s migration to digital TV broadcasting. By H112,
two years after launching its digital TV initiative, Argentina’s digital TV network reached 75%
of the population, according to government figures. Argentina now has 50 digital TV stations deployed across the country.
- All operators report demand for smartphones is high, and value-added services are driving revenue upwards. Sales of smartphones boomed in 2011 and were estimated by BMI at about 2.7mn units, higher than previously believed. BMI projected that smartphones would comprise around 24% of Argentine handset sales, up from around 10% in 2010. Mobile telecoms operator Personal reported that users of smartphones increased by 110% in 2010 and estimated that smartphones currently account for around 16% of the mobile handset market. Operator handset subsidies helped expand the market beyond the corporate segment. SHOW LESS READ MORE >
Executive Summary 5
SWOT Analysis 7
Argentina Consumer Electronics Market SWOT 7
Argentina Political SWOT 8
Argentina Economic SWOT 9
Argentina Business Environment SWOT 10
Americas Risk/Reward Ratings 11
Table: Americas Risk/Reward Ratings, Q412 13
Consumer Electronics Market 14
Table: PC Sales, 2009-2016 16
AV Devices 20
Table: AV Sales, 2009-2016 20
Mobile Handsets 24
Table: Mobile Communications, 2009-2016 24
Consumer Electronics Industry 28
Table: Argentine Electronics Industry – Key Product Output (mn), 2011 31
Table: AV Products Domestic Output (’000), 2005-2011 34
Mobile Handsets 36
Table: Mobile Handset Domestic Output (’000), 2005-2011 36
Industry Forecast Scenario 39
Consumer Electronics Market 39
Table: Consumer Electronics Overview, 2009-2016 39
Industry Developments 42
Macroeconomic Forecast 46
Table: Economic Activity, 2011-2016 48
Competitive Landscape 49
Company Profiles 57
Country Snapshot 58
Table: Argentina's Population By Age Group, 1990-2020 ('000) 59
Table: Argentina's Population By Age Group, 1990-2020 (% of total) 60
Table: Argentina's Key Population Ratios, 1990-2020 61
Table: Argentina's Rural And Urban Population, 1990-2020 61
Argentina Consumer Electronics Report Q4 2012
© Business Monitor International Ltd
BMI Methodology 62
How We Generate Our Industry Forecasts 62
Electronics Industry 63