The total worth of the sector is set to increase to $3.67
billion by 2014, driven by the popularity of new electronic devices such as LED
and 3G TV sets, 3G mobile handsets, smartphones, feature-rich notebooks and
Blu-ray disc players, revealed the data released by companiesandmarkets.com.
Modest single-digit growth in consumer electronics sales was
forecast for 2010, following a market pickup in the fourth quarter of 2009.
“Sales were sluggish in January 2010. While large consumer
electronics retailers such as Jacky’s and Jumbo Electronics expect better times
ahead, they remain cautious,” said the report by the leading online business
information aggregator.
“The shift toward more cautious spending patterns is likely
to persist well into 2011 and, following the Dubai financial crisis, the coming
years will bring about a shift in the balance of population and GDP in Abu
Dhabi’s favor,” it added.
Computer hardware, which accounted for 57 percent of the
UAE’s consumer electronics spending in 2009, was forecast to record sales worth
$1.57 billion in 2010, up from $1.49 billion in 2009.
The compound annual growth rate (CAGR) for sales of computer
hardware over 2010-2014 was forecast at about eight percent. “Stronger demand
in the notebook sector was the main growth driver in 2009 as consumers felt the
benefits of aggressive channel promotions,” the report said.
The market for audio and video devices, which accounted for
about 30 percent of consumer electronics spending in the country last year, is
projected at $855mn in 2010.
The market is
expected to grow at a CAGR of four percent between 2010 and 2014 to reach $1.07
billion by the end of 2014. “The rollout of high definition broadcasting will
drive demand for premium TV sets and Blu-ray devices,” the report said.
Mobile handset sales, which accounted for approximately 13
percent of the country’s consumer electronics spending in 2009, are expected to
grow at a CAGR of five percent to $416 million through 2014 when mobile
subscriber penetration is forecast to reach 254 percent.
“Sales will be dominated by the replacement market and
revenues driven by demand for smartphones and 3G handsets, despite problems
concerning availability of the Apple iPhone in the emirates,” said the
companiesandmarkets.com report.
Shoppers in the UAE last year spent $596.2 million on
consumer electronics such as TVs and DVD players, 33.8 per cent less than in
2008, an earlier data from the consultancy GfK Retail and Technology’s Temax
report showed.
Sales across the seven categories of electronic goods
monitored by GfK — consumer electronics, photo equipment, major and small
domestic appliances, information technology, telecommunications, and office
equipment - were down 25.1 per cent to $291.3 million .
Consumer electronics were the hardest hit, followed by sales
of photo equipment, which dropped 29.6 per cent to $157 million. Sales of
telecommunications electronics, such as mobile phones, dropped 27.8 per cent
last year to $789.5 million, according to the GfK data.
Small domestic appliances were the least affected, with
sales down 5.1 per cent to $299.5 million. But sales of major domestic
appliances in the UAE last year dropped 18.4 per cent to $240 million, it
added.
