BMI View: we expect strong sales growth in the Philippine consumer electronics market over the medium term as incomes rise and device prices decline amidst intense vendor competition. We forecas t growth of 6.4 % in 2015 , a slight deceleration from 2014 as the AV segment returns to a lower growth trajectory after demand was boosted in 2014 by TV set sales ahead of the FIFA World Cup . Consumer electronics spending is expected to remain strong over the medium term , with government spending providing a stimulus supplementing technology trends such as demand for smartphones and tablets. Given the Philippines' low PC penetration, many provincial markets are relatively untapped territories, while rural populations contain the largest number of potential first-time mobile handset purchasers.
Headline Expenditure Projections
Computer Sales: USD2.0bn in 2014 to USD2.2bn in 2015, +9.0% in US dollar terms. Booming sales of Android tablets expected to continue, while we expect a resurgence in desktop and notebook sales to add to growth momentum in 2015.
AV Sales: USD1.1bn in 2014 to USD1.1bn in 2015, +2.7% in US dollar terms. AV sales increased markedly in 2014 as TV sales were boosted by the FIFA World Cup, but we forecast a return to a lower growth trajectory in 2015.
Handset Sales: USD2.9bn in 2014 to USD3.0bn in 2015, +5.9% in US dollar terms. We expect another growth slowdown in the handset market in 2015 as the smartphone market becomes more saturated, while the aggressive expansion of Chinese vendors will add to an intense dynamic of price competition between local players and global leaders.
Key Trends & Developments
The strong presence of local vendors has added to competitive dynamics in the smartphone market in the Philippines. Cherry Mobile has been the standout local player by capitalising on the boom in low-end Android handsets. In 2013 it achieved sales of between 200,000 and 250,000 units a month, making it the top...
The Philippines Consumer Electronics Report has been researched at source and features latest-available data covering both the manufacture and sale of consumer electronics products, critically analysing - and forecasting - the market dynamics affecting each sub-sector, including audio-visual, computers, mobile handsets, gaming and automotives electronics. Furthermore, the report analyses the domestic and global economic trends driving device demand and provides company rankings and competitive landscapes covering leading multinational and national consumer electronics companies and analysis of latest industry news and trends in Philippines.
Business Monitor International (BMI)'s Philippines Consumer Electronics Report provides industry professionals and strategists, sector analysts, business investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the consumer electronics industry in Philippines.
- Benchmark BMI's independent consumer electronics industry forecasts for Philippines to test other views - a key input for successful budgeting and strategic business planning in the Philippine consumer electronics market.
- Target business opportunities and risks in Philippines through our reviews of latest industry trends and major deals, projects and investments.
- Exploit the latest competitive intelligence with company SWOT analyses.
BMI Industry View
Summary of BMI's key industry forecasts, views and trend analysis covering consumer electronics, major investments and projects.
Consumer Electronics Market
Analysis of the size of the domestic market for electronics products, with in-depth assessment and data covering the dynamics driving each sub-sector; audio-visual, computers, mobile phone handsets and gaming devices, as well as demand for automotives electronics.
Analysis and data of the domestic electronics manufacturing sector. We assess the regulatory and business operational issues facing manufacturers - including openness to foreign investment, infrastructure, IP issues and the global demand context - and their impact on the production of electronics goods, which is again broken down via market sub-sectors.
Industry Forecast Scenario
Historic data series and forecasts to end-2018 for all key industry and economic indicators (see list below), supported by explicit assumptions, plus analysis of key risks to the main forecast, covering computers, communications and gaming devices. Indicators include:
Industry value (US$bn); population (mn); nominal GDP (US$bn); real GDP growth (%), GDP per capita, industrial production Index (% y-o-y ave.) unemployment % of labour force.
Business Environment Rankings
BMI's Consumer Electronics Business Environment Rankings provide a country-comparative Risk-Reward Rankings index aimed at investors and participants in the regional consumer electronics market. The rankings methodology makes sophisticated use of over 40 industry, economic and demographic data points.