Argentina Consumer Electronics Report Q2 2016
BMI View: After another devaluation in December 2015 we envisage a sharp contraction in Argentineconsumer electronics spending in 2016 as purchasing power is eroded in global markets - ie, for importeddevices. We expect performance to mirror that of 2014, the previous peso devaluation, but the volumedeclines in the PC and AV segments are expected to be less pronounced after increases in the output oflocal industry in recent years. After the shock of devaluation subsides we envisage a return to devicedemand growth based on rising prosperity in Argentina, though growth 2017-2020 will only just offset theextent of declines in 2016, with a CAGR of 7.7% forecast over 2016-2020 as a whole.
Latest Updates & Industry Developments
Computer Hardware Sales: USD1.3bn in 2016 to USD2.1bn in 2020, corresponding to a CAGR of11.6%. Devaluation the key factor determining PC sales 2014-2016, but we envisage a return to morestable dynamics over the medium term with sustainable volume growth built on a foundation of risingincomes.
AV Sales: USD1.6bn in 2016 to USD2.2bn in 2020, a CAGR of 8.7%. AV sales are expected tounderperform but smart and Ultra-HD TV set upgrades will provide new opportunities in the TV setmarket.
Handset Sales: USD2.2bn in 2016 to USD2.6bn in 2020, a CAGR of 4.3%. Smartphone upgradeopportunities still exist in Argentina, and this will sustain handset segment outperformance over themedium term.
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