Taiwan Consumer Electronics Report Q2 2016
BMI View: Taiwan is a mature devices market with high penetration in most device categories, includingsmartphones and tablets, and consequently its growth potential is smaller than those of emerging markets inthe region. However, the medium-term forecast, with a CAGR of 3.5% over 2016-2020, is an improvementover 2014-2015 with the economy expected to strengthen, while product trends in the computer hardwareand AV segments turn positive. We identify the most prominent opportunity as premium device sales - ieflagship smartphones and tablets, hybrid notebooks and Ultra-HD TV sets - based on our analysis ofhousehold income trends, which will go some way in compensating for the wider limitations posed bysaturation.
Latest Updates & Industry Developments
Computer Hardware Sales: USD2.2bn in 2016 to USD2.6bn in 2020, a compound annual growth rate(CAGR) of 4.1%. A stabilisation of the tablet market after the initial boom and pent-up upgrade demandin traditional form factor market are both positive for demand growth, particularly in the context of risingincomes.
AV Sales: USD1.2bn in 2016 to USD1.4bn in 2020, a CAGR of 3.2%. Smart and Ultra-HD TV setupgrades will counteract saturation and price erosion in the core flat-panel TV set market, while thecannibalisation of digital camera sales is set to slow with smartphone ownership already widespread by2016. The market will not however return to previous highs, and is forecast to be 29% below 2012 peakeven in 2020.
Handset Sales: USD2.1bn in 2016 to USD2.4bn in 2020, a CAGR of 2.9%. The smartphone upgradegrowth engine will extinguish over the medium term as ownership becomes ubiquitous, but strongerdemand for flagships will provide some growth momentum as incomes rise at the high end in Taiwanover 2016-2020.
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