BMI View: Sams ung 's plan to invest in a local production facility underscores South Africa's regional hub status. There are strong attractions to establishing a local production facility in South Africa, including government incentives, domestic and regional market size and external factors such as infrastructure and labour availability. However, a high level of union activities and a rising labour cost base threaten the long-term viability and sustainability of a production base in the country.
Headline Expenditure Projections
PC sales: USD3.8bn in 2013 to USD3.3bn in 2014. Forecast in US dollar terms reflects the impact of currency weakness and decline in demand for PCs.
AV sales: USD1.5bn in 2013 to USD1.7bn in 2014. Digital TV sets and set-top boxes expected to drive growth in 2014.
Handset sales: USD1.6bn in 2013 to USD1.8bn in 2014. Smartphones will be the main revenue growth driver owing to wider 3G/4G network coverage and lower tariffs.
South Africa's score was 54 out of 100, earning it sixth place in our 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
Samsung is investing USD20mn in a TV factory expected to start production by the end of 2014. The factory will initially produce around 500,000 TV sets per annum, rising to 1mn. Samsung will subsequently expand the facility with further investment through to 2018, with the addition new production lines for other CE and household products, including tablet computers. The Samsung factory will be built on KwaZulu Natal's Dube Tradeport, a special economic zone (SEZ). The South African government is establishing the duty-free SEZ hubs to attract foreign capital by offering tax incentives and other administrative support in the zones.
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 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.