United Arab Emirates Consumer Electronics Report Q4 2012
- ID: 2299548
- November 2012
- Region: United Arab Emirates
- 61 pages
- Business Monitor International
The UAE’s consumer electronics spending will grow by about 6% in US dollar terms in 2012 to US$3.8bn. In 2012 solid growth in consumer electronics sales is expected, but the fastest growth is likely to be in the tourist segment, while local consumers remain more cautious. Another factor driving this trend is a pick-up in the number of tourists, which has provided a boost to the all-important carrytrade Structural weaknesses still stand in the way of a more pronounced recovery, including weak credit conditions and Dubai's onerous debt repayment schedule. However, the outlook for household consumption has picked up in recent months and we are now forecasting this to grow by 8.0% in 2012.
Spending on AV products will gain momentum from demand for new high-tier products such as 3D and LED TV sets. SLR cameras, high-end camera phones and smartphones are among other popular products.
Headline Expenditure Projections:
- Computer Sales: US$1.9bn in 2011 to US$2.0bn in 2012, +5% in US dollar terms. Forecast in US dollar terms unchanged despite price erosion and a deceleration in retail sales growth in Q411 and Q112.
- AV Sales: US$1.3bn in 2011 to US$1.3bn in 2012, +6% in US dollar terms. Forecast in US dollar terms unchanged, with flat-screen TV sets the main growth driver.
- Handset Sales: US$410mn in 2011 to US$460mn in 2012, +12% in US dollar terms. Forecast in US dollar terms unchanged, with smartphones comprising above 50% of sales.
The UAE’s score was an unchanged 61.4 out of 100.0, which meant that it kept first place in our latest MEA CE RRR table. BMI expects the UAE to remain a key regional market, with an ongoing improvement in consumer sentiment.
Key Trends & Developments:
- Product innovation and price cuts will be important drivers of AV spending. LED TVs was one strong-selling product category in 2011after prices dropped by between 5% and 25% for various models, with larger screen sizes proving popular. Even with more content available, 3D TV prices have acted as a constraint for many consumers, at least initially. The average starting price for a 3D TV set in the region in 2011 was about US$2,500, with 40" to 60" 3D LCD models having a price range of about AED9,000-25,000. However, with average prices of 3D sets falling by up to 40%, further growth in this segment is expected in 2012.
- In 2012 the launch of more smartphone models based on the Android operating system should help to intensify competition, following a number of local distributor and vendor releases in 2011. Android’s share of the market has increased dramatically and is expected to reach around 25% of all UAE handset sales in 2012, from nearly 20% in 2011. Meanwhile, the previously dominant BlackBerry from RIM has seen its share decline.
- One factor driving retail growth is a pick-up in the number of tourist visitors, which provided a boost to the all-important carry-trade, which had fallen off in 2009. An influx of tourists is expected to increase spending on consumer electronics goods such as netbooks and tablets.
However, the possibility of the UAE joining sanctions against Iran could have an impact on PC re-exports. SHOW LESS READ MORE >
Executive Summary 5
SWOT Analysis 7
UAE Consumer Electronics Market SWOT 7
UAE Political SWOT 8
UAE Economic SWOT 9
UAE Business Environment SWOT 10
Risk/Reward Ratings 11
Middle East And Africa 11
Table: Middle East And Africa Risk/Reward Ratings, Q412 13
Consumer Electronics Market 14
Table: Computers Demand, 2009-2016 14
AV Devices 19
Table: AV: Demand, 2009-2016 19
Mobile Handsets 24
Table: Mobile Handsets: Demand, 2009-2016 24
Consumer Electronics Industry 28
Table: The UAE’s Distributors For Leading Brands 34
Industry Forecast Scenario 35
Consumer Electronics Market 35
Table: Consumer Electronics Overview 2009-2016 35
Government Initiatives 37
Macroeconomic Forecast 38
Competitive Landscape 41
Mobile Handsets 46
Company Profiles 49
Axiom Telecom 49
Jumbo Electronics 51
Eros Group 53
Country Snapshot 55
Table: United Arab Emirates' Population By Age Group, 1990-2020 ('000) 56
Table: United Arab Emirates' Population By Age Group, 1990-2020 57
Table: United Arab Emirates' Key Population Ratios, 1990-2020 58
Table: United Arab Emirates' Rural And Urban Population, 1990-2020 58
BMI Methodology 59
How We Generate Our Industry Forecasts 59
Electronics Industry 59