Pakistan Consumer Electronics Market Report: Handset sale expected to grow 15% to 28.3mn units in 2015

Karachi: Pakistan’s consumer electronics market, defined as including computing devices, mobile handsets and AV products, is projected to be worth about US$1.8bn in 2011. This is expected to increase to US$2.9bn by 2015, driven by a rising population and growing affordability, Business Monitor International’s Pakistan Consumer Electronics Report Q4 2011 says.

The spending handset imports continued to grow strongly, but demand for high-cost consumer durables such as TV sets will be affected by inflation and rising interest rates. A weak economy means that market development will depend on action to reduce the inflow of illegally imported TV sets and fake brand mobile handsets, report says.

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, report says.

Computers accounted for about 20% of Pakistan’s consumer electronics spending in 2010. BMI forecasts Pakistan’s domestic market computer hardware sales (including notebooks and accessories) of US$312mn in 2011, up from US$292mn in 2010. Computer hardware CAGR for the 2011- 2015 period will be about 8%. The abolition in the Pakistan 2010-2011 budget of general sales tax (GST) on imported computers should boost the market. However, the government denied plans to introduce a ban on imports of used computers and accessories.

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

Mobile Handsets sales are expected to grow at a CAGR of 15% to 28.3mn 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 US$40. Low-cost Chinese handsets have made substantial market inroads, but established brands hope to take back some market share, following the government’s ban on imports of mobile handsets without IMEI numbers 3G licenses are still expected to be awarded in 2011, but Pakistan’s telecoms regulator has yet to confirm this.

Pakistan Consumer Electronics Market Report: Handset sale expected to grow 15% to 28.3mn units in 2015

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