Indonesia Consumer Electronics Report Q2 2016
BMI View: We expect a second successive year of US dollar contraction for Indonesia consumerelectronics device spending in 2016, but with a forecast contraction of just 0.1% performance will be aconsiderable improvement over 2015. Device spending momentum is expected to pick up further from 2017and we envisage a CAGR of 7.1% for 2016-2020 as a whole, to total spending of USD19.7bn in 2020.
Underpinning our view for improved performance later in the forecast is pent-up demand from 2015 and2016, which will be unlocked as economic growth strengthens and the rupiah appreciates against the USdollar 2017-2019 - which will increase the purchasing power of Indonesian households. Other factorsmaking a positive contribution to the consumer spending growth story will include favourable demographicdynamics, rising levels of urbanisation, and declining device prices.
Latest Updates & Industry Developments
Computer Hardware Sales: USD4.83bn in 2016 to USD7.61bn in 2020, compound annual growth rate(CAGR) of 8.8% 2016-2020. Depreciation remains a squeeze on affordability in 2016, but the mediumtermoutlook is bright based on income growth that will deepen the market and ease price sensitivity inthe middle class.
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