The price of this market report covers 4 quarterly reports on this sector. This quarterly report will be downloadable instantly as a PDF document, with the 3 remaining reports delivered at regular intervals throughout the year.

South Africas consumer electronics devices market, defined as the addressable market for computing devices, mobile handsets and video, audio and gaming products, is projected at US$8.8bn in 2012. This is expected to increase at an 11% CAGR to US$13.3bn by 2016, driven by demographics, product innovation, rising incomes and rising computer penetration.

The relative buoyancy of the retail sector was evident in late 2011, with major retailers enjoying brisk trade in the pre-Christmas period. Retailers reported strong sales of large-screen TV sets, with models in the ZAR9,000 range proving popular. Combined with relatively low inflation and low interest rates, customers are spending on bigger ticket items such as PCs and notebooks, thereby boosting the industry. While we acknowledge various vulnerabilities such as high personal debt levels, adverse weakness in the housing market and somewhat subdued levels of private sector credit extension, in our view a number of factors bode well for consumer spending. Vendors will focus increasingly on more affluent consumers and new high-end product categories such as smartphones and 3D TV.

Computers

Computer hardware accounted for about 62% of South African consumer electronics spending in 2011. BMI projects South African domestic market computer hardware sales of US$5.2bn in 2012, up from US$5.1bn in 2011. Computer hardwares compound annual growth rate (CAGR) for 2012-2016 is forecast at about 12%, as a result of rising computer penetration, falling prices and vendor and retailer promotions.

AV

AV devices accounted for about 17% of South Africas consumer electronics spending in 2011. South Africas domestic AV device market is projected at US$1.5bn in 2012. This market is also expected to grow at a CAGR of 8% between 2012 and 2016, to a value of US$2.1bn, driven by new technologies and digital TV transition, which is due to be completed by 2016. Vendors will focus on high-growth new product categories such as internet-enabled TV sets and 3D TV.

Mobile Handsets

Mobile handset sales accounted for 21% of South Africas consumer electronics spending in 2011. South African handset sales are expected to grow at a CAGR of 8% to US$2.9bn by 2016, when mobile subscriber penetration is expected to be about 150%. The replacement market will be increasingly important and demand for 3G handsets has exceeded expectations, while lower prices have boosted sales of smartphones.

Click for Report details:South Africa Consumer Electronics Report Q2 2012