BMI View: BMI expects the Philippines IT market will grow by around 7 % in 2013. Despite an uncertain economic outlook, consumer electronics spending is likely to remain fairly strong in the coming quarters, with government spending providing a stimulus. The Philippines was one of the strongest regional TV markets in 2012 and the country's move to digital broadcasting should receive a boost from the government's selection of the Japanese ISDB-T standard. 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. Vendors will seek profit from product innovation such as smartphones based on the Android operating system, and 3D and LED TV sets.
Headline Expenditure Projections
Computer Sales: US$2.2bn in 2012 to US$2.4bn in 2013, +10% in US dollar terms. Forecast in US dollar terms unchanged following strong double-digit growth in 2012.
AV Sales: US$901mn in 2012 to US$964mn in 2013, 7% in US dollar terms. Forecast in US dollar terms is unchanged, with the main driver being demand for flat-panel TV sets.
Handset Sales: US$1.9bn in 2012 to US$2.0bn in 2013, +4% in US dollar terms. Forecast in US dollar terms unchanged with the Philippines seen as a high regional growth market for smartphones.
Key Trends & Developments
Demand from outside Manila will continue to drive market expansion. More vendors are signing up new distributors and opening stores nationwide. Cebu is seen as a gateway to provinces in Visayas and Mindanao. Meanwhile, PCs for schools programmes will be another driver for the Philippines computer market.
As around one-third of the Philippine population still use analogue sets, there is plenty of continued growth potential in digital TV sets. In January 2013, the government finally announced the Japanese ISDB-T standard as its choice for the Philippine's digital TV migration. The Philippines currently...