United States Consumer Electronics Report Q1 2016
BMI View: We continue to maintain a positive outlook for the US consumer electronics market in our Q116report update. We believe that the US consumer electronics market will remain the global leader in terms ofmarket size and adoption of latest technologies over the course of 2016 to 2019. 2016 will see the overallmarket size expand by 2%, with the market reaching an estimated total value of USD320.1bn. High devicepenetration rates, strong demand for the latest devices and short replacement cycles makes the US the mostmarket lucrative for vendors - but high penetration also results in diminished growth opportunities in someof the key markets such as tablets and smartphones - particularly when compared to emerging markets..
Furthermore, over the medium term we believe questions still remain about the sustainability ofconsumption in the absence of strong wage growth and the fact most sales will be upgrades rather than newcustomers.
Latest Updates & Industry Developments
Computer Hardware Sales: USD200.4bn in 2015 to USD205.1bn in 2016. Tablet volumes continue tobe squeezed by a diminished pool of first-time buyers and lengthening replacement cycles.
AV Sales: USD54.8bn in 2015 to USD55.3bn in 2016. Market will begin to rebound after a contractionin 2015 driven by contractions in the digital camera market and saturation in TV set sales. The AVmarket will continue to underperform in 2016.
Handset Sales: USD58.7bn in 2015 to USD59.8bn in 2016. Growth is now expected to be stronger inlater years of forecast, but smartphone market maturity and price pressures in the Android ecosystem willstill mean handset market value growth deceleration over the medium term.
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