South Korea Consumer Electronics Report Q4 2012
- ID: 2299514
- November 2012
- Region: South Korea
- 58 pages
- Business Monitor International
We project that South Korean consumer electronics spending will grow by about 4.8% in US dollar terms in 2012 to US$13.3bn, with a moderation in consumer demand expected. In future, maturity in many market segments means that growth will be driven to a large extent by product innovation such as smartphones and touch-screen handsets, as well as LED and 3D TV sets. The roll-out of digital TV broadcasting ahead of analogue switch-off in 2013 will help support sales of premium TV sets.
Smartphones, tablets and internet-enabled TV sets should be among the main growth areas in 2012, with OLED TV set technology a new competitive battleground for vendors. However, the market remains a challenging for many vendors, due to the dominance of domestic giants such as Samsung and LG.
Headline Expenditure Projections:
- Computer Hardware Sales: US$4.3bn in 2011 to US$4.5bn in 2012, +1% in US dollar terms.
The forecast in US dollar terms has been upwardly revised, due to analyst modification, but growth areas will include demand for more mobile form factors such as tablets, as well as Microsoft’s Windows 8 operating system.
- AV Sales: US$2.56bn in 2011 to US$2.64bn in 2012, +2% in US dollar terms. Forecast in US dollar terms downwardly revised, with TV set product innovation expected to provide the most dynamic development.
- Handset Sales: US$5.9bn in 2011 to US$6.2bn in 2012, +6% in US dollar terms. Forecast in US dollar terms unchanged, with smartphones the main revenue growth driver.
South Korea’s score was 60.5 out of 100.0, which gave it an unchanged seventh place in our latest Asia CE Risk Reward Ratings (RRR) table. South Korea was boosted in our table by high Industry Risk and Country Risk scores of 70 and 83.7, respectively. However the country’s overall ranking was deflated by a relatively low Country Rewards score of 40, which in part reflects the barriers to entry for non-South Korean market-entrants.
Key Trends & Developments:
- A combination of new technologies such as OLED and internet-enabled TV, and more competitive pricing, should help to support AV demand. The falling price and profitability of LCD TV panels has led Samsung and LG to announce in 2012 that they will cease domestic production of LCD TV sets, to focus on LED. A new focus for vendors is OLED TV sets, with leading local players like Samsung and LG vying to become market leader in this area of technology. These new technology Internet-enabled TV sets will remain a significant growth area, after sales boomed in 2011.
- With an increasingly saturated market, handset revenue will be driven by product areas such as smartphones and high-definition camera phones. As of May 2012, smartphones made up 50.9%
(26.77mn) of the mobile phones in the country. Korean telecoms regulatory body the KCC predicts that the number of smartphones in the country will reach 34.8mn (54.1%) by the end of 2012
- South Korean vendors are looking to maintain their PC market dominance over the forecast period by competing in the growing tablet segment and through the introduction of new notebook products. Tablets, originally seen as primarily a consumer device, are forecast to experience increasing take-up in the business segment. In Q112, vendors unveiled notebook and tablet computers running on Microsoft's new Windows 8 operating system. Meanwhile, vendors are also looking to ultrabooks as a new growth area SHOW LESS READ MORE >
Executive Summary 5
SWOT Analysis 7
South Korea Consumer Electronics Market SWOT 7
South Korea Electronics Industry SWOT 8
South Korea Political SWOT 9
South Korea Economic SWOT 10
South Korea Business Environment SWOT 11
Asia Pacific Risk/Reward Ratings 12
Table: Asia Pacific Risk/Reward Ratings, Q412 14
Consumer Electronics Market 15
Table: Computers – Demand, 2008-2016 15
Table: AV: Demand, 2009-2016 17
Mobile Handsets 20
Table: Mobile Handsets – Demand, 2008-2016 20
Consumer Electronics Industry 25
Price Trends 26
AV Devices 29
Table: LCD TV Set Production 29
Table: Digital Video Recorder Production 29
Mobile Handsets 31
Table: GSM Handsets Production 31
Table: CDMA Handsets Production 31
Industry Forecast Scenario 33
Table: Consumer Electronics Overview, 2008-2016 34
Industry Trends and Developments 35
Macroeconomics Forecast 37
Table: South Korea – Economic Activity, 2011-2016 39
Competitive Landscape 40
AV Devices 41
Mobile Handsets 43
Domestic Company Profiles 49
Samsung Electronics 49
Country Snapshot 52
Table: South Korea's Population By Age Group, 1990-2020 ('000) 53
Table: South Korea's Population By Age Group, 1990-2020 (% of total) 54
Table: South Korea's Key Population Ratios, 1990-2020 55
Table: South Korea's Rural And Urban Population, 1990-2020 55
BMI Methodology 56
How We Generate Our Industry Forecasts 56
Electronics Industry 57