We expect the Malaysian consumer electronics market will contract in US dollar terms in 2015 due to ringgit depreciation exacerbating existing market trends such as the smartphone and tablet slowdown after the initial rapid diffusion of ownership. However, from 2016 we expect relatively strong growth to return as declining device prices combine d with strong economic performance , particularly broad basedincomes growth , once again become the dominant trend. Meanwhile, i ncreasing competition in the smartphone, tablet and flat-screen TV markets from Chinese vendors will ensure the market continues to deepen, but as the market becomes saturated intense price competition is expected to result in a squeeze on value growth and vendor margins. There is also downside risk due to uncertainties over the export market, particularly the potential for a hard landing in China.
Headline Expenditure Projections
Computer Hardware Sales: USD2.569bn in 2014 to USD2.317bn in 2015, a decline of 9.8% as the slowdown in the tablet market caused by core market saturation is exacerbated by the impact of ringgit depreciation, resulting in deferred purchases.
AV Sales: USD1.062bn in 2014 to USD1.000bn in 2015, a decrease of 5.8%. Although we again expect AV sales to contract, it should be noted that its performance relative to other market segments is expected to improve as the TV set and digital camera markets begin to stabilise after significant declines in recent years.
Handset Sales: USD3.155bn in 2014 to USD3.295bn in 2015, growth of 4.4%. Saturation in the core smartphone market, combined with price erosion as vendor competition intensifies, will limit value increases from 2015 - but handset sales will continue to be the outperforming segment.
TABLE OF CONTENTS
BMI Industry View SWOT Consumer Electronics Market Political Economic Operational Risk Industry Forecast Table: Consumer Electronics Overview (Malaysia 2013-2019) Macroeconomic Forecasts Economic Analysis Table: Economic Activity (Malaysia 2010-2019) Industry Risk Reward Ratings Industry Risk Reward Index Table: Asia CE Risk/Reward Index - Q415 Market Overview Computers Table: PC Sales (Malaysia 2013-2019) AV Table: AV Sales (Malaysia 2013-2019) Mobile Handsets Table: Mobile Communications (Malaysia 2013-2019) Competitive Landscape International Companies Table: Lenovo Table: Acer Table: Panasonic Local Companies Table: Malaysian Pacific Industries Industry Trends And Developments Table: Electronics Output, 2010-2019 (USDbn) Regulatory Developments Table: Government Authorities Demographic Forecast Table: Population Headline Indicators (Malaysia 1990-2025) Table: Key Population Ratios (Malaysia 1990-2025) Table: Urban/Rural Population & Life Expectancy (Malaysia 1990-2025) Table: Population By Age Group (Malaysia 1990-2025) Table: Population By Age Group % (Malaysia 1990-2025) Methodology Industry Forecast Methodology Sector-Specific Methodology Sources Risk/Reward Index Methodology Sector-Specific Methodology Table: Consumer Electronics Risk/Reward Index Indicators Table: Weighting Of Indicators