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Hungary Consumer Electronics Report Q2 2015

76 Pages BMI Research February 25, 2015 SKU: BMI5475672

Hungary Consumer Electronics Report Q2 2015

BMI View: The Hungarian economy has been a regional underperformer in recent years, and the outlook isexpected to remain weak in 2015 and into 2016 as forint depreciation against the dollar is expected todampen device demand. This is a shift from the positive trend in 2014 when booming tablet and smartphonesales, as well as the fact upgrade demand was brought forward by the withdrawal of XP support and theFIFA World Cup, drove overall growth. Although several macroeconomic indicators are expected tocontinue to strengthen in 2015, the depreciation of the forint against the US dollar will mean tradingconditions remain challenging and we expect a contraction in both PC and AV demand in 2015, and onlymodest handset value growth.

Headline Expenditure Projections

Computer Hardware Sales: USD933mn in 2014 to USD826mn in 2015, a decrease of 11.5%. Aslowdown in tablet sales, and the fact desktop and notebook upgrade demand was brought forward to2014 by XP support withdrawal, will exacerbate the negative impact of depreciation of the forint in 2015.

AV Sales: USD497mn in 2014 to USD470mn in 2015, -5.4% in US dollar terms. Digital camera andMP3 markets will continue to contract, but volumes are beginning to stabilise after the boom insmartphone volumes cannibalised sales rapidly 2012-2014.

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Hungary Consumer Electronics Report Q2 2015

BMI Research
February 25, 2015

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