Czech Republic Consumer Electronics Report Q1 2014
Published by Business Monitor International
on Nov 21, 2013
, 72 pages
PDF - Download Now with 3 Quarterly Updates format - Download Now
The consumer electronics market in the Czech Republic is one of the most lucrative in Central and Eastern Europe as a result of the relatively high incomes of the population. However, a challenging economic environment is squeezing the market and we forecast growth of just 1.8% in US Dollar terms in 2013. Another trend squeezing the market is the decline in desktop and notebook sales as consumers opt for lower-cost tablets. However, sales of smartphones, flat-screen TVs and tablets all offer vendors opportunities for strong unit and value growth. We have a positive outlook for growth from 2014 as the economic environment strengthens, making consumers more willing to spend on big-ticket items such as PCs, TVs and cameras.
Headline Expenditure Projections
Computer hardware sales: US$1.82bn in 2012 to US$1.77bn in 2013, -2.7% in US dollar terms. Sales of tablets are growing rapidly. However, this has partly been due to the expense of relatively more expensive desktops and notebooks and the consequent decline in sales, limiting increases in market value.
AV sales: US$1.6bn in 2012 to US$1.7bn in 2013, +3.7% in US dollar terms. BMI's forecast in US dollar terms is unchanged, with demand for flat-screen, Smart and 3D TV sets driving growth. Handset sales: US$698mn in 2012 to US$763mn in 2013, +9.3% in US dollar terms. Mobile penetration is already high, meaning flat volumes overall. However, smartphone penetration is rising rapidly and pushing up the average selling price of devices.
Key Trends & Developments
The handset market is the most dynamic segment of the consumer electronics market. Smartphone sales account for an increasing share of overall handset sales, and are forecast to reach 60% of sales in 2013. The popularity of smartphones has resulted in an increase in the average selling price of devices in the overall handset market. A key factor behind this trend is the declining price of smartphones, with East Asia-produced mid-range smartphones running Android becoming particularly important drivers. Google's partner vendors have been the prime beneficiaries of the shift to smartphones so far; however, there is evidence that Windows Phone has achieved strong growth in Q213, leveraging Nokia's brand strength in the market. This could make a dent in Android's market share and create a viable third ecosystem in the mobile market.
Sales of digital TV sets will receive a continuing boost as Czech internet service providers roll-out triple-play or quadruple play packages of fixed and mobile broadband bundled with digital television services. Flat-panel TV sets will be the main driver of AV category sales growth over the forecast period as consumers upgrade and trade in their old models for digital ones.