Venezuela Consumer Electronics Report Q2 2016

Venezuela Consumer Electronics Report Q2 2016

BMI View: The depth of the economic crisis in Venezuela is behind our view that it will be theunderperforming consumer electronics market globally in 2016 and over the medium term to 2020.

Spiralling inflation, bolivar weakness, the low oil price, regulatory risks and political uncertainty allcontribute to a bleak economic outlook that impacts the devices market. We expect a further squeeze on theaffordability of devices in the short term, while lack of dollar access has resulted in product shortages, andthe environment is so challenging as to also impact the local assembly industry. A mild recovery after avolume and value collapse are only cautiously predicted for the final years of the forecast, and even thisscenario has risk weighted to the downside. We envisage a CAGR of -6.6% for US dollar consumerelectronics device spending over 2016-2020.

Latest Updates & Developments

Computer hardware; contraction from USD214mn in 2016 to USD172mn in 2020. Inflation to drivelocal currency growth, but outlook is bleak due to sharp reduction in affordability and product shortagesas even local assembly has stalled due to extent of economic dislocation.

AV and gaming; contraction from USD246mn in 2016 to USD203mn in 2020. Device shortages in shortterm, and affordability squeeze over medium term, hurts the outlook for non-essential upgrades.

Handsets; USD578mn in 2016 to USD577mn in 2020. Handset segment forecast to begin recoverybefore other segments due to lower average selling price, large base of local production, and greaternecessity of handset ownership.

BMI Industry View
Latest Updates & Developments
Consumer Electronics Market
Industry Forecast
Latest Updates
Structural Trends
Table: Consumer Electronics Overview (Venezuela 2014
Industry Risk Reward Index
Table: CE RRI Regional Scores Breakdown, Q216
Table: Americas Risk/Rewards Index, Q2 2016
Market Overview
Recent Developments
Table: PC Sales (Venezuela 2014
AV Devices
Table: AV Sales (Venezuela 2014
Mobile Handsets
Table: Mobile Communications (Venezuela 2014
Industry Trends And Developments
Regulatory Development
Table: Regulatory Authority
Competitive Landscape
International Companies
Table: Samsung Electronics
Local Companies
Table: Síragon
Table: Venezolana De Industria Technologica (VIT)
Table: Venezolana de Telecomunicaciones (Vtelca)
Demographic Forecast
Demographic Outlook 2015
Table: Population Headline Indicators (Venezuela 1990
Table: Key Population Ratios (Venezuela 1990
Table: Urban/Rural Population & Life Expectancy (Venezuela 1990
Table: Population By Age Group (Venezuela 1990
Table: Population By Age Group % (Venezuela 1990
Industry Forecast Methodology
SectorSpecific Methodology
Risk/Reward Index Methodology
SectorSpecific Methodology
Table: Consumer Electronics Risk/Reward Index Indicators
Table: Weighting Of Indicators

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