Recently published research from Business Monitor International, "Czech Republic Consumer Electronics Report Q4 2013", is now available at Fast Market Research
Boston, MA -- (SBWIRE) -- 10/03/2013 -- We forecast growth of just 1.8% in US Dollar terms in the Czech consumer electronics market in 2013. The weak economic environment has been a drag on sales growth; however, the downward revision this quarter is due to the decline in desktop and notebook sales as consumers opt for lower cost tablets. Meanwhile, there are some areas where growth is still strong, for instance smartphones, flat-screen TVs and tablets, with strong unit and value growth. While growth will be limited in 2013, 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
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Computer hardware sales: US$1.82bn in 2012 to US$1.77bn in 2013, -2.7% in US dollar terms. The shift from desktops and notebooks to tablets will maintain volumes, however with consumers opting for lower cost tablets, the value of the market is forecast to decline in 2013.
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 vendors reporting demand for Smart TV and 3D TV sets.
Handset sales: US$698mn in 2012 to US$763mn in 2013, +9.3% in US dollar terms. Unit sales are expected to remain flat in 2013, but with smartphones accounting for a greater share of sales, the value of the market is increasing.
Key Trends & Developments
Smartphones account for an increasing share of overall handset sales, and are forecast to reach 60% of sales in 2013. Rising incomes and operator promotions, including handset subsidies, are driving uptake - but the most important factor is the declining price of smartphones. East Asia-produced mid-range smartphones running Android, with impressive range of features, have declined in price and proved popular with consumers. 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.
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