BMI View: As a significant easing of political and economic crisis unlocked strong growth in 2014,we demand in the Egyptian consumer electronics market staged a strong recovery. Growth will return to aslower, but more sustainable trajectory after a wave of deferred purchases were unlocked in 2014.
Meanwhile, our in-house Country Risk team's view for more rapid depreciation of the Egyptian poundagainst the US dollar adds downside risk to our outlook. That aside, we have a positive medium-termoutlook for Egypt's consumer electronics market, with a young population, low device penetration rates,rising incomes and the falling cost of devices to drive growth. We expect government, vendor and operatorledinvestment in supporting infrastructure such as telecoms networks and retail/distribution networks tofurther encourage growth and drive accelerating demand for connected devices such as smartphones andtablets. We expect total spending to increase at a compound annual growth rate of 5.2% 2015-2019, withtotal spending expected to rise from USD3.37bn in 2014 to USD4.33bn in 2019.
Headline Expenditure Projections
Computer hardware sales: USD909mn in 2014 to USD947mn in 2015, up 4.2% in US dollar terms.
Despite a rebound in notebook sales beginning in 2014, it will be tablets that area again the largest PCdevice category by volume in 2015.
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