BMI View: There is further moderation to our growth outlook for South Africa's consumer electronics market this quarter on the back of continued macroeconomic headwinds . The rand's continued depreciation is expected to have a significant impact on consumer spending, especially on imported products, in the short to medium term. Ch anging usage patterns reflected by rising demand for smartphones and tablets is cannibalising demand for other consumer electronics products, including PCs and digital cameras. Furthermore, the increasing sales volume of smartphones is expected to have a limited impact on the market owing to the decline in the average unit price of devices following the arrival of low-cost brands.
Headline Expenditure Projections
PC S ales: US$3bn in 2013 to US$2.6bn in 2014. Forecast in US dollar terms downgraded to reflect the impact of currency weakness and decline in demand for PCs.
AV sales: US$1.5bn in 2013 to US$1.7bn in 2014. Forecast in US dollar terms unchanged, with digital TV sets and set-top boxes expected to drive growth in 2014.
Handset sales: US$1.6bn in 2013 to US$1.8bn in 2014. Forecast in US dollar terms unchanged, with smartphones the main revenue growth driver.
Risk/Reward Rating: South Africa's score was 51.1 out of 100, earning it 6th place in our RRR table. We expect rising penetration of consumer electronics devices such as smartphones and flat-screen TV sets. However, a large grey market and limited internet access outside major cities and towns pose downside risks to growth.
Key Trends And Developments
In December 2013, consumer electronics vendor Mustek announced the acquisition of an indirect 26% stake in Sizwe Africa IT Group, for a total cash consideration of ZAR15.2mn. Mustek will advance a loan of ZAR6.7mn to Zaloserve, the ultimate holding company of Sizwe, and a loan of ZAR8to Omni Capital. Sizwe Africa IT provides IT products, network products and solutions and IT maintenance and support...
The South Africa 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 South Africa.
Business Monitor International (BMI)'s South Africa 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 South Africa.
- Benchmark BMI's independent consumer electronics industry forecasts for South Africa to test other views - a key input for successful budgeting and strategic business planning in the South African consumer electronics market.
- Target business opportunities and risks in South Africa 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 Ratings
BMI's Consumer Electronics Business Environment Ratings provide a country-comparative Risk-Reward Ratings index aimed at investors and participants in the regional consumer electronics market. The ratings methodology makes sophisticated use of over 40 industry, economic and demographic data points.