Bahrain Consumer Electronics Report Q2 2016
BMI View: A combination of market saturation and economic uncertainty means the growth prospects forconsumer electronics device spending growth in Bahrain are limited over 2016-2020. It will howevercontinue to be a lucrative market for vendors with high incomes reflected in premium device bias, highprices and wide margins. Our forecast envisages growth in USD50,000+ annual income households willsupport some growth at the premium end of the market, but overall saturation in most device categoriesmean there is little low-hanging fruit for vendors. Under our core scenario, we envisage total devicespending will grow at a CAGR of 1.5% over 2016-2020, but we caution that risks are weighted to thedownside, with a sustained low in the oil price the most significant risk, but political unrest could alsoderail our core scenario.
Latest Updates & Industry Developments
Computer Sales: The market will increase from USD150mn in 2016 to USD165mn in 2019, at a CAGRof 2.5%. An ageing desktop and notebook stock and deferred purchases from 2015 and 2016 are behindour expectation that computer sales will register the strongest growth once economic conditions becomemore supportive.
AV Sales: The market will increase from USD125mn in 2016 to USD130mn in 2019, at a CAGR of1.0%. Smart and Ultra-HD TV set upgrades will put the market on a stronger trajectory compared torecent years, but digital camera volumes will not recover after cannibalisation by smartphoneproliferation.
Handset Sales: We forecast a growth from USD267mn in 2016 to USD279mn in 2019, at a CAGR of1.1%. Saturated smartphone market means growth will be far below the rates in the initial boom phase,but premium bias and short replacement cycles will nonetheless mean vendors can benefit.
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