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Saudi Arabia Consumer Electronics Report Q2 2016

Saudi Arabia Consumer Electronics Report Q2 2016

BMI View: We maintain a subdued outlook for the consumer electronics market in Saudi Arabia due to thenegative shocks related to the global collapse in the price of oil. We believe that weaker consumerconfidence will continue to exacerbate the drag on consumer electronics spending due to saturation indevice categories such as tablets and LED/LCD TV sets. This underpins our forecast for muted growth inthe Saudi consumer electronics market over 2016-2020 at a compound annual growth rate of 0.8%. Whilethe overall environment will be challenging we identify lucrative opportunities for vendors in the premiumsegment, namely high-end smartphones and OLED TV sets, due to high incomes and a fashion-consciousdomestic consumer base. The low end of the market may however be constrained due to the exit of aconsiderable number of migrant workers under the governments 'Saudisation' policy.Latest Updates & Industry Developments

Computer Hardware Sales: Set to decrease from USD4.29bn in 2016 to USD4.19bn in 2020, a CAGRof -1.3%. The market outlook was already subdued due to high device penetration and the potential forprice erosion, including in the tablet market, but this was exacerbated by the weaker economic outlookand we now expect the market to contract over the medium term.

AV Sales: USD1.60bn in 2016 to USD1.73bn in 2020, a CAGR of +1.6%. After three successive yearsof contraction we envisage a return to growth, although not to previous highs due to cannibalisation ofdigital camera volumes, with the increased popularity of OLED TV sets providing a boost to marketvalue.

Handset Sales: USD6.15bn in 2016 to USD6.61bn in 2020, a CAGR of 2.0%. The handset market willoutperform based on the strength of demand for premium devices, and particularly phablets.

BMI Industry View
SWOT Analysis
Consumer Electronics Market
Industry Forecast
Latest Updates
Structural Trends
Table: Consumer Electronics Overview (Saudi Arabia 2014-2020)
Industry Risk Reward Index
Table: CE RRI Regional Score Breakdown, Q216
Table: MEA Consumer Electronics Risk/Rewards Index, Q216
Market Overview
Table: PC Sales (Saudi Arabia 2014-2020)
AV Devices
Table: AV Sales (Saudi Arabia 2014-2020)
Mobile Devices
Table: Mobile Communications (Saudi Arabia 2014-2020)
Industry Trends And Developments
Competitive Landscape
Local Companies
Table: Alesayi Electronics
Table: eXtra
Table: MeMega
Table: Modern Electronics Company Limited
Table: United Matbouli Group
Demographic Forecast
Demographic Outlook
Table: Population Headline Indicators (Saudi Arabia 1990-2025)
Table: Key Population Ratios (Saudi Arabia 1990-2025)
Table: Urban/Rural Population & Life Expectancy (Saudi Arabia 1990-2025)
Table: Population By Age Group (Saudi Arabia 1990-2025)
Table: Population By Age Group % (Saudi Arabia 1990-2025)
Industry Forecast Methodology
Sector-Specific Methodology
Risk/Reward Index Methodology
Sector-Specific Methodology
Table: Consumer Electronics Risk/Reward Index Indicators
Table: Weighting Of Indicators

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