Pakistan Consumer Electronics Market projected to be worth $1.8bln in 2011: Report Q3 2011

Karachi: Pakistan’s consumer electronics market, defined as including computing devices, mobile handsets and AV products, is projected to be worth about $1.8 billion in 2011. This is expected to increase to $3.0 billion by 2015, driven by a rising population and growing affordability, says its market report Q3 2011.

In 2011 spending on high-cost consumer durables such as TV sets will be affected by inflation and rising interest rates. A weak economy has impacted demand for mobile services, and market development will depend on government action to reduce the inflow of illegally imported TV sets and fake brand mobile handsets.

Growth should be driven, however, by improved ICT infrastructure and more credit availability. The market’s considerable potential is currently depressed by a large grey market, poor IP protection, an unstable economic and security situation, and weak distribution channels. Reforming high national and provincial taxes and tariffs on products ranging from computers to prepaid mobile cards would boost the market, according to the report.

Computers accounted for about 20% of Pakistan’s consumer electronics spending in 2010. BMI forecasts Pakistan’s domestic market computer hardware sales (including notebooks & accessories) of $312 million in 2011, up from $292 million in 2010. Computer hardware CAGR for 2011- 2015 period will be about 8%.

AV devices accounted for about 39% of consumer electronics spending in 2010. The domestic AV device market is projected at $645 million in 2011. The market is expected to grow at a CAGR of 13% between years 2010-2015, to value of almost $1.1 billion in 2015. TV sets remain the core product in this category, but the growing availability of smuggled colour TV sets is a market inhibitor.

Pakistan’s market handset sales are expected to grow at a CAGR of 16% to 29.5 million units in 2015, as mobile subscriber penetration reaches 70%. Revenues growth will be slower due to lower average selling prices (ASPs) of mobile handsets, with most handsets sold at less than $40.

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