Business Monitor International


South Africa Consumer Electronics Report

Published 20 February 2014

  • 63 pages
  • Instant access to your report online and PDF format through your account library
  • Includes 3 free updated quarterly reports
 
$1,295.00
South Africa Consumer Electronics Report

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...

Table of Contents

BMI Industry View
7
SWOT
9
Consumer Electronics SWOT
9
Political
11
Economic
12
Business Environment
13
Industry Forecast
14
Table: Consumer Electronics Overview
14
Macroeconomic Forecasts
19
Economic Analysis
19
Table: Real GDP Growth, % chg q-o-q, SAAR
19
Table: South Africa - Economic Activity
24
Industry Risk Reward Ratings
25
Risk/Reward Ratings
25
Table: MEA CE RRR - Q2 2014
27
Market Overview
29
Computers
29
Table: South Africa PC Market Growth, 2011 - 2018
30
AV Devices
33
Table: South Africa AV Devices Market Growth, 2011-2018
33
Mobile Handsets
37
Table: Mobile Handset Market Growth, 2011-2018
37
Industry Trends And Developments
41
Regulatory Development
43
Table: Regulatory Authority
43
Competitive Landscape
44
International Companies
44
Table: Samsung
44
Table: Pinnacle Africa
45
Table: Tarsus
46
Company Profile
47
Mustek
47
Sahara Computers
51
Demographic Forecast
54
Table: South Africa's Population By Age Group, 1990-2020 ('000)
55
Table: South Africa's Population By Age Group, 1990-2020 (% of total)
56
Table: South Africa's Key Population Ratios, 1990-2020
57
Table: South Africa's Rural And Urban Population, 1990-2020
57
Methodology
58
Industry Forecast Methodology
58
Sector-Specific Methodology
59
Sources
59
Risk/Reward Rating Methodology
60
Sector-Specific Methodology
61
Table: Consumer Electronics Risk/Reward Ratings Indicators
61
Table: Weighting Of Indicators
62

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.

Key Benefits

  • 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.

Coverage

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.

Electronics Industry

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.

secure
Benefit from discounts when you add multiple products to your basket
2 Products SAVE 10%
3 Products SAVE 15%
4 Products SAVE 20%
5 Products SAVE 25%
6 Products SAVE 30%
7 - 20 Products SAVE 35%
21 Products or more SAVE 40%

Testimonials

'An essential, multi-faceted research tool. BMI’s thorough understanding of the major market players enables an informed – and informative – review of the sector’s actual performance, together with useful insights into current industry issues, which are topped-off with detailed and invaluable forecasts of industry and macroeconomic trends.’

Senior Research Analyst, ABC International Bank plc