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Kuwait Consumer Electronics Report Q4 2012
Business Monitor International, November 2012, Pages: 51
BMI forecasts 7% growth for the Kuwaiti consumer electronics market in 2012, with spending on devices such as smartphones and tablets expected to benefit from a positive economic context. This surge in spending is almost wholly government-driven, with household incomes having been boosted by a series of public sector wage hikes and increased social benefits. Sales will also be boosted by growing popularity of flat-screen TV sets, Android smartphones, notebook computers and tablets, and other premium products, as well as ongoing expansion of the electronics retail sector. The positive outlook is reflected in recent sentiment data, with consumer sentiment in May 2012 at its highest level for almost a year.
Headline Expenditure Projections:
Computer hardware sales: US$362mn in 2011 to US$394mn in 2012, +9% in US dollar terms. Forecast in US dollar terms upwardly revised due to macroeconomic factors, following stronger than expected growth in 2011. AV sales: US$426mn in 2011 to US$454mn in 2012, +7% in US dollar terms. Forecast in US dollar terms upwardly revised due to analyst modification, and product innovation will drive continued growth in the flat-screen TV set category.
Handset sales: US$174mn in 2011 to US$196mn in 2012, +13% in US dollar terms. Forecast in US dollar terms unchanged but operator promotions are driving strong growth in the smartphone market.
Kuwait’s score was 58.1 out of 100.0. Kuwait ranked fourth in the MEA region in our latest RRR table,
behind the UAE, but ahead of regional peers such as Saudi Arabia and Qatar.
Key Trends & Developments:
- Flat-screen TV sets will be the main driver of AV category sales growth over the forecast period as consumers upgrade and trade their old models for digital. Product innovation will also boost sales, with a focus on features such as 3D, improved display quality and larger, wider screens, as well as design and wireless capabilities.
- In the mobile devices sector, the upgrade of network infrastructure to support new data services will help to drive demand for 3G phones and smartphones. Kuwaiti consumers have an increasing demand for easy access to emails and other data services in Kuwait and when they are travelling. Other drivers of smartphone sales include more competitive data tariffs from the main operators.
- The popularity of multimedia portable computers with wireless connectivity will continue to provide opportunities. Vendors will look to new form factors such as tablets and the heavily hyped ultrabooks, which are relatively high in price, but could provide a new boost to the PC market in 2012.
Executive Summary 5
SWOT Analysis 7
Kuwait Consumer Electronics Market SWOT 7
Kuwait Political SWOT 8
Kuwait Economic SWOT 8
Kuwait 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: PC Sales 2009-2016 13
Table: AV Sales, 2009-2016 16
Mobile Handsets 19
Table: Mobile Communications, 2009-2016 19
Consumer Electronics Industry 23
Table: Kuwait Distributors For Leading Brands 26
Industry Forecast Scenario 27
Consumer Electronics Market 27
Table: Consumer Electronics Overview, 2009-2016 27
Industry Developments 30
Macroeconomic Forecast 31
Table: Economic Activity 33
Competitive Landscape 34
Company Profiles 39
Axiom Telecom 39
Jumbo Electronics 41
Eros Group 43
Country Snapshot 45
Table: Kuwait's Population By Age Group, 1990-2020 ('000) 46
Table: Kuwait's Population By Age Group, 1990-2020 (% of total) 47
Table: Kuwait's Key Population Ratios, 1990-2020 48
Table: Kuwait's Rural And Urban Population, 1990-2020 48
BMI Methodology 49
How We Generate Our Industry Forecasts 49
Electronics Industry 50