Saturation in device categories such as tablets and smartphones will result in subdued growth in the Saudi consumer electronics market over 2015-2019, with a compound annual growth rate of 2.3 %. We anticipate that the market will remain highly lucrative to vendors due to high incomes and a fashion-conscious domestic consumer base. The mid-to-high-end consumer electronics devices market will experience strong value growth during our forecasting period to 2019 as incomes rise, especially for public sector workers. The low end of the market may be constrained due to the exit of a considerable number of migrant workers under the governments' Saudisation' policy.
Headline Expenditure Projections
Computer Hardware Sales: Set to decrease from USD2.36 in 2014 to USD2.35mn in 2015. The desktop and notebook market is forecast to remain stable, but a decline in tablet volumes will act as a drag on overall value growth as the market continues to adjust to the initial rapid diffusion of ownership among the core user group.
AV Sales : USD1.637bn in 2014 to USD1.643bn in 2015, up 0.4%. The latest flat-screen TVs and soundbars will boost market value despite relatively low volumes due to the high average selling price of UHD TVs, giving them disproportionate impact on overall market value compared with volumes sold.
Han dset Sales : USD5.7bn in 2014 to USD6.0bn in 2015, up 5.1%. The handset market will return to stronger growth after a combination of the Saudisation policy, smartphone market saturation and price erosion resulted in a market contraction in 2014.
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