Chilean sales of consumer electronics devices are forecast to grow 7% in 2013, with many of the trends that drove consumer electronics spending in H212 expected to continue in 2013. In H112, sales of handsets and TV sets dipped into the low single-digit range, but there were stronger growth areas such as smartphones.
Low unemployment and solid growth in private consumption and bank loans represent favourable trading conditions for vendors. As wage growth continues to outpace inflation, we expect consumer spending to remain buoyant. Banks are increasingly willing to extend credit and the unemployment rate remains low, contributing to our overall growth outlook for spending on consumer electronics devices such as PCs, flatscreen TV sets and smartphones A significant slowdown in external demand could have an effect on household spending, but the fundamentals of low household penetration of many digital devices, plus growing affordability, should keep the consumer electronics market on an upward trajectory
Headline Expenditure Projections
Computer sales: US$1.6bn in 2012 to US$1.8bn in 2013, +7% in US dollar terms. Forecast in US dollar terms downwardly revised but Windows 8 should provide a boost to hardware upgrades.
AV sales: US$1.4bn in 2012 to US$1.5bn in 2013, +6% in US dollar terms. Forecast in US dollar terms downwardly revised, with flat-screen TV sets expected to provide the most dynamic development.
Handset sales: US$376mn in 2012 to US$414mn in 2013, +10% in US dollar terms. Forecast in US dollar terms unchanged, with smartphones the main revenue growth driver.
Chile's score was 52.6 out of 100.0. BMI expects rising penetration of consumer electronics devices such as smartphones and flat-screen TV sets.
Key Trends & Developments
- The main long-term drivers of growth in the PC segment are lower prices and greater affordability. Vendors will focus increasingly on lower income groups and tier-2 cities, where the fastest growth opportunities exist. This has necessitated developing relationships with a distinct group of retailers which have a strong footprint in this market.
- In 2013 there should be solid growth in the Chilean AV device market. Government social programmes and rising household incomes are expected to fuel demand for consumer durables such as TV sets. The approval by Chile's upper house of parliament of a digital TV bill, would boost the country's migration to digital broadcasting. Meanwhile regulator Subtel continues to implement its TVD Chile digital broadcasting plan and Q412 saw the launch of digital broadcasting in the country's southern Magallanes region.
- There should be increasing take-up of smartphones in the consumer segment as there is a greater range of devices available at prices that more and more subscribers can afford. Vendors reported strong growth in smartphone sales in 2012, despite competition from tablets as a rival connectivity device. Chilean operators have taken an active role in trying to grow this market.