MANILA, Philippines - The country’s market for consumer electronic devices is projected to be worth around $4.5 billion this year, according to Business Monitor International (BMI), a leading, independent provider of proprietary data, analysis, ratings, rankings and forecasts covering 175 countries and 22 industry sectors.
Such a large addressable market for computing devices, mobile handsets and AV products is being fueled by supportive domestic economic conditions and continued growth in remittance inflows by Filipinos working in many parts of the world, BMI said.
The United Kingdom-based research outfit believes the Philippine consumer electronics market will continue to remain strong in the coming quarters and will grow at a compound annual growth rate (CAGR) of seven percent to $5.9 billion by 2015.
A latest BMI industry report on the Philippine consumer electronics market saw rising household penetration of PCs (currently less than 20 percent).
BMI forecasts the Philippine domestic market for computer hardware (including notebooks and accessories) to be worth $1.9 billion this year, up from $1.7 billion in 2010.
Computer hardware CAGR for the next four years is forecast at about 11 percent, with much growth coming from increasing PC penetration which, overall, is less than 10 percent at present.
Computers accounted for around 42 percent of Philippine consumer electronics spending in 2010, according to the BMI report.
More Filipino households this year are also acquiring their first or additional LCD TV sets. BMI noted strong domestic demand behind the healthy sales for AV and mobile devices.
BMI said much growth is coming from rural areas outside Metro Manila which are considered untapped territories where the largest number of potential first-time mobile handset purchasers reside.
The BMI report indicated that sales of AV devices in the country account for around 16 percent of the total consumer electronics spending last year. The Philippine domestic AV device market is projected at $700 million this year, with the potential to grow at a CAGR of 10 percent until 2015 to be worth $1.0 billion. BMI said the main driver would be the demand for LCD TV sets in the Philippines’ nine million TV household market.
The second biggest chunk of the Philippine consumer electronics market goes to mobile handsets. BMI said sales would account for around 42 percent of Philippine consumer electronics spending during the five-year forecast period.
The Philippine market’s handset sales are expected to grow at a CAGR of eight percent to 15.8 million units in 2015, as mobile subscriber penetration reaches 122 percent.
Sales will be dominated by lower priced mass-market phones, but the Philippines is viewed as a promising market for smartphones. Demand for models based on Android was boosted by a series of new product launches in the fourth quarter of 2010.
Overall, BMI said vendors present in the Philippine consumer electronics market will seek their 2011 profits from product innovation such as smartphones based on the Android operating system, and 3D and LED TV sets.
Christmas sales
The upcoming holiday season undoubtedly will drive more sales of consumer electronics. In fact, Samsung already staged an early “Samsung Christmas Wishlist Event” at Trinoma Mall last Sept. 23-25, offering best deals on smartphones, tablets and other gadgets.
Samsung also launched last week its new Series 3 305U1A notebooks which should be in stores soon and perfectly timed just before Christmas.
Here’s a quick rundown of the Series 3 305U1A’s specs:
• AMD Fusion processor,
• Windows 7 Basic,
• Eight-hour battery on full charge,
• Anti-reflective 11.6-inch HD LED screen,
• Weighs 1.3kg,
• Ultra light and slim bezel,
• Samsung Fast Start technology for “instant on” boot-up,
• Available in five colors,
• Four-in-one card reader,
• Bluetooth V3.0 High Speed*3 and a range of USB and HDMI ports,
• Ergonomically sized island-type keyboard, and
• Samsung Duracase casing.