BMI View: Singapore has one of the weaker growth outlooks in the Asia Pacific region as a result of thematurity of the market, which is evident in the high penetration of desktops, notebooks, digital cameras andflat-screen TVs, as well as for new device categories such as smartphones and tablets. This means theSingapore market has passed through the period of strongest growth associated with rapidly risingpenetration. There is upside potential if wearable computing devices prove mass market appeal inSingapore, or if uptake of ultra-HD TV sets exceeds our expectation for it to be a high-income nicheproduct. Despite limited growth prospects, it is relevant to highlight the fact the market will continue to belucrative for vendors, with high levels of spending per capita a feature of the market due to high incomes, astrong economic outlook, consumer demand for the latest devices and short replacement cycles.
Headline Expenditure Projections
Computer Hardware Sales: USD2.04bn in 2014 to USD1.92bn in 2015, -5.7% in US dollar terms.Depreciation against the US dollar will exacerbate existing trends of tablet and desktop volume declinesto result in contraction in market value in 2015.
AV Sales: USD748mn in 2014 to USD735mn in 2015, -1.7% in US dollar terms. The TV market ismature and price erosion will drag on value growth, but we expect the digital camera market will begin tostabilise from 2015, allowing for a slower rate of contraction than in 2014.
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