Egypt Consumer Electronics Report Q4 2012
- ID: 2299592
- November 2012
- Region: Egypt
- 53 pages
- Business Monitor International
BMI projects Egypt's consumer electronics spending will grow by about 11% in US dollar terms in 2012 to US$16.7bn. Spending on consumer electronics has remained a relative bright spot, despite the relatively weak employment backdrop. Strong remittances from Egyptians working in Saudi Arabia have helped to boost household spending but with a weak employment backdrop we stress that it will take some time before the economy is able to return to pre-crisis rates of growth. Egypt is still expected to be one of the higher-growth consumer markets in the region over the next few years, although several constraints, including low disposable incomes, economic disparities, low computer literacy and channel inefficiencies, could prevent the market from fulfilling its potential. Key factors behind the forecast growth in Egypt's consumer electronics sales include the emergence of a more affluent middle class and the growing acceptance of modern retail concepts.
Headline Expenditure Projections:
Computer hardware sales: US$956mnn in 2011 to US$1.0bn in 2012, +13% in US dollar terms.
Forecast in US dollar terms upwardly revised due to analyst modification and computer penetration is forecast to rise from 10% now to above 20% by 2016.
AV sales: US$346mn in 2011 to US$377mn in 2012, +9% in US dollar terms. Forecast in US dollar terms remains unchanged, with flat-screen TV sets the main growth driver.
Handset sales: US$2.1bn in 2011 to US$2.3bn in 2012, +8% in US dollar terms. Forecast in US dollar terms remains unchanged with aggressive promotions and China imports expected to result in continued price pressure.
Egypt's score was 39 out of 100.0, which gave it 10th place in our latest MEA CE RRR table. BMI expects Egypt to attain a higher ranking over time due to the growth potential of its market, particularly in regions outside of Cairo, where distribution and retail infrastructures are currently underdeveloped.
Key Trends & Developments:
- Flat-screen TV sets will be the main driver of Egyptian AV revenue growth as consumers upgrade and trade their old models for digital. TV penetration is about 30% of the population and this is expected to increase to around 35% over the forecast period, creating momentum for organic growth. Egypt's growing population and the emergence of a more affluent middle class will also underpin an upwards market trajectory that should outpace GDP growth.
- The Egyptian handset market is youthful and urban, with more than half the population under the age of 25. The market retains considerable untapped potential for segmentation. Slowing market growth has led to aggressively priced tariffs by operators Mobinil and Etisalat, keen on obtaining mass subscribers and boosting market share. In 2012, the government launched a crackdown on smuggled Chinese handsets which are believed to account for above 10% of the Egyptian market.
- Egypt's consumer PC market retains considerable growth potential as the current level of computerisation is low. PC penetration is estimated in the region of 10% and is forecast to rise to above 20% by 2016. Government digital drive and affordable computer programmes will be an increasingly important driver of the PC market. SHOW LESS READ MORE >
Executive Summary 5
SWOT Analysis 7
Egypt Consumer Electronics Market SWOT 7
Egypt Political SWOT 8
Egypt Economic SWOT 9
Egypt Business Environment SWOT 10
MEA Risk/Reward Ratings 11
Table: Middle East And Africa Risk/Reward Ratings, Q412 13
Market Overview 14
Table: PC Sales, 2009-2016 14
Table: AV Sales, 2009-2016 17
Mobile Handsets 19
Table: Mobile Communications, 2009-2016 19
Consumer Electronics Industry 23
Table: Egypt Distributors For Leading Brands 28
Industry Forecast Scenario 29
Consumer Electronics Market 29
Table: Consumer Electronics Overview, 2009-2016 30
Industry Developments 32
Macroeconomic Forecast 33
Table: Economic Activity 35
Competitive Landscape 36
Company Profiles 42
Raya Holdings For Tech & Communications (Trade Division) 42
Axiom Telecom 44
HP Egypt 46
Country Snapshot Egypt Demographic Outlook 47
Table: Egypt's Population By Age Group, 1990-2020 ('000) 48
Table: Egypt's Population By Age Group, 1990-2020 (% of total) 49
Table: Egypt's Key Population Ratios, 1990-2020 50
Table: Egypt's Rural And Urban Population, 1990-2020 50
BMI Methodology 51
How We Generate Our Industry Forecasts 51
Electronics Industry 52