Israel Consumer Electronics Report Q4 2012
- ID: 2299574
- November 2012
- Region: Israel
- 56 pages
- Business Monitor International
We project that Israeli consumer electronics spending will grow by about 5% in US dollar terms in 2012 to US$3.5bn, with our previous forecast being downwardly adjusted owing to a deteriorating economic outlook. In Q112, consumer spending continued to slow, after spending on durable goods such as PCs and TV sets showed signs of falling off in 2011. However, sales of mobile phones should receive a boost from a new law that liberalises mobile phone import. Consumer spending should also be supported by stimulatory fiscal spending, as well as falling unemployment and low inflation and interest rates. Across our five-year forecast period, a growing population and rising computer and internet penetration will drive consumer electronics demand growth, along with new technologies and products such as tablets, smartphones, higher capability netbooks and 3D TV sets.
Headline Expenditure Projections:
- Computer Hardware Sales: US$2.5bn in 2011 to US$2.6bn in 2012, 3%-plus in US dollar terms. Forecast in US dollar terms downwardly revised owing to macroeconomic factors, but Israeli businesses are investing more to facilitate expansion and development.
- AV Sales: US$486mn in 2011 to US$515mn in 2012, 6%-plus in US dollar terms. Forecast in US dollar terms unchanged, with flatscreen TV sets expected to provide the most dynamic development.
- Handset Sales: US$348mn in 2011 to US$390mn in 2012, 12%-plus in US dollar terms.
Forecast in US dollar terms unchanged, with smartphones the main category driver and growth opportunity.
Israel’s score was 57.2 out of 100.0, in third place in our latest Middle East and Africa (MEA) consumer electronics risk/reward rating (RRR) table. BMI expects rising penetration of consumer electronics devices such as smartphones and flatscreen TV sets, but the external economic environment will constrain demand.
Key Trends & Developments:
- The Israeli AV market will continue to be driven by the migration to digital broadcasting, which will fuel consumer upgrades to flatscreen TV sets. Israel is on course to become the first country in the MEA region to reach 100% household digital TV penetration. Israel approved the launch of digital TV services in 2008 and subsidies covering half the cost of the set-top box are available to some groups. In 2011, demand for flatscreen TV sets continued to rise and the emergence of 3D TV has prompted a mini-resurgence in sales of plasma TV sets.
- The Israeli government has launched various initiatives to increase computer and internet penetration. The current rate of PC penetration, while high for the region, offers the potential for organic growth. Household penetration is estimated at around 75%. Israel has around 600,000 children living below the poverty line and only 3% have internet or home PC access, compared with 90% in the top income group. In H112, the Knesset Economic Affairs Committee passed a plan to relax restrictions on importing mobile phones. Previously cellular phone operators dominated the application process for import approval, and controlled about 80% of phone sales in Israel. The new law should increase the range of handsets available by making it possible for firms to import any cell phone that is approved in the EU or the US. By weakening the link between the purchase of a mobile phone and purchase of a cellular phone service, the new regime is also expected to lower mobile phone prices. SHOW LESS READ MORE >
Executive Summary 5
SWOT Analysis 7
Israel Consumer Electronics Market SWOT 7
Israel Political SWOT 8
Israel Economic SWOT 9
Israel Business Environment SWOT 9
Risk/Reward Ratings 10
MEA Consumer Electronics Risk/Reward Ratings, Q412 10
Table: Middle East And Africa Risk/Reward Ratings, Q412 12
Market Overview 13
Table: Israel Distributors For Leading Brands 15
Table: PC Sales, 2009-2016 16
AV Devices 19
Table: Exports, 2009-2016 19
Mobile Handsets 22
Table: Mobile Communications, 2009-2016 22
Table: Israel Cellular Operators And Technology 24
Consumer Electronics Industry 27
Table: ICT Overview, 2009-2016 27
Table: Exports, 2009-2016 27
Table: Manufacturing, 2009-2016 29
Industry Forecast Scenario 31
Consumer Electronics Market 31
Table: Consumer Electronics Overview (US$mn), 2009-2016 32
Industry Developments 34
Macroeconomic Forecast 36
Table: Israel - Economic Activity, 2011-2016 38
Competitive Landscape 39
AV Devices 40
Mobile Handsets 41
Company Profiles 44
Scailex Corporation 44
Demographic Overview 50
Table: Israel's Population By Age Group, 1990-2020 ('000) 51
Table: Israel's Population By Age Group, 1990-2020 (% of total) 52
Table: Israel's Key Population Ratios, 1990-2020 53
Table: Israel's Rural And Urban Population, 1990-2020 53
BMI Methodology 54
How We Generate Our Industry Forecasts 54
Electronics Industry 55