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Qatar Consumer Electronics Report Q4 2012
Business Monitor International, November 2012, Pages: 52
We project Qatar consumer electronics spending will grow by about 9% in US dollar terms in 2012.with leading indicator data being supportive of our positive outlook. Credit growth grew 24.1%
and 30.3% y-o-y in January and February 2012 respectively, but BMI does expect consumer electronics spending to moderate in 2012, due to a reduction in consumer confidence. An evolving retail landscape will help to stimulate sales, and new technologies, and factors such as increased competition in the mobile communications sector and the roll-out of high-spend broadband services, will also act as drivers Meanwhile, an expected influx of visitors in the run-up to the 2022 FIFA World Cup (3mn tourists arrived when South Africa hosted the event in 2010) should boost spending.
Headline Expenditure Projections:
- Computer Hardware Sales: US$232mn in 2011 to US$253mn in 2012, +9% in US dollar terms. Forecast in US dollar terms unchanged following stronger-than-expected sales growth in 2011.
- AV Sales: US$307mn in 2011 to US$336mn in 2012, +9% in US dollar terms. Forecast in US dollar terms unchanged, with flat-screen TV sets the main growth driver.
- Handset Sales: US$90mn in 2011 to US$103mn in 2012, +14% in US dollar terms. Forecast in US dollar terms unchanged, with operator promotions and new releases expected to result in continued smartphone demand growth.
Qatar’s score was 56.4 out of 100.0, which despite being slightly down on the previous quarter, gave it an unchanged 4th place in our latest MEA CE RRR table. BMI expects Qatar to remain an important regional market due to the high economic growth rate that is forecast, and which will buoy consumer confidence.
Key Trends & Developments:
- Qatar’s promising 3G market will also be a core battleground for mobile operators and handset vendors alike, and is just starting to show signs of impressive growth. BMI projects that 3G models will account for above 80% of handset sales by 2016. Our new 3G growth forecast is that by the end of 2016 about 46% of Qatari mobile subscribers will use some form of 3G service.The 2012 London Olympics and UEFA football championships should encourage more Qataris to upgrade their flat-screen TV sets to enjoy a better viewing experience. One driver of spending on AV devices will be the roll-out of faster broadband services such as Qtel’s fibre-tothe-
home (FTTH) service, which should drive spending on facilitating devices such as cameras,
monitors, portable computers and digital TV sets. We forecast private consumption growing 11.0% y-o-y and 9.3% y-o-y in 2012 and 2013 respectively, down from our estimate of 12.5% in 2011.
- Sales of LCD and plasma screen sets have increased as prices have fallen substantially over the last few years, with the price of a 32 inch LCD TV now below US$850. One emerging product category vendors will watch is ultrabooks, which have been heavily promoted by some vendors.
However, their average price in H112 was about QAR4,000, which is likely to act as a constraint on the market. Prices are expected to fall during H212, spurring faster adoption, and the devices could potentially capture around one-quarter of the PC market by the end of 2012.
Executive Summary 5
SWOT Analysis 7
Qatar Consumer Electronics Market SWOT 7
Qatar Political SWOT 8
Qatar Economic SWOT 9
Qatar Business Environment SWOT 10
MEA Risk/Reward Ratings 11
Table : Middle East And Africa Risk/Reward Ratings, Q412 13
Consumer Electronics Market 14
Table: PC Sales, 2008-2016 14
AV Devices 17
Table: AV Sales, 2009-2016 17
Mobile Handsets 20
Table: Mobile Communications, 2009-2016 20
Consumer Electronics Industry 24
Industry Developments 24
Table: Qatar Distributors For Leading Brands 26
Industry Forecast Scenario 27
Consumer Electronics Market 27
Table: Consumer Electronics Overview, 2009-2016 27
Macroeconomic Forecast 30
Table: Qatar – Economic Activity, 2011-2016 32
Competitive Landscape 33
AV Devices 34
Mobile Handsets 36
Company Profiles 40
Axiom Telecom 40
Jumbo Electronics 42
Eros Group 44
Country Snapshot 46
Table: Qatar's Population By Age Group, 1990-2020 ('000) 47
Table: Qatar's Population By Age Group, 1990-2020 (% of total) 48
Table: Qatar's Key Population Ratios, 1990-2020 49
Table: Qatar's Rural And Urban Population, 1990-2020 49
BMI Methodology 50
How We Generate Our Industry Forecasts 50
Electronics Industry 50