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Argentina Consumer Electronics Report Q2 2015

77 Pages BMI Research February 25, 2015 SKU: BMI5475608

Argentina Consumer Electronics Report Q2 2015

BMI View: Consumer electronics spending was hit hard by the economic challenges in 2014, with totalspending estimated to have contracted by 15.7%. Peso devaluation, high inflation and technical debt defaultin Q214 negatively impacted Argentine consumer purchasing power in global markets, as well as erodingconfidence levels and restricting access to credit - all of which contributed to the contraction. Despite thisbleak performance we believe the outlook for Argentina is stronger over the medium term, particularly from2017 to 2019. Areas of growth we identify include smartphones, tablets, hybrid notebooks and Smart TVs.

We expect to see the stabilisation begin in 2015, before a return to faster growth from 2017 as slowerinflation and stronger real growth should help the market for consumer electronics rebound. However wehighlight there is considerable downside risk with Argentina vulnerable to external shocks should theglobal economic climate become more hostile.

Headline Expenditure Projections

Computer Hardware Sales: USD1.9bn in 2014 to USD1.8bn in 2015, a decrease of 5.8%. After a sharpcontraction in demand in 2014 as a result of peso devaluation we expect the PC market to exhibit strongerperformance in 2015.

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Argentina Consumer Electronics Report Q2 2015

BMI Research
February 25, 2015

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