Boston, MA -- (SBWIRE) -- 11/28/2013 -- The continued influx of visitors into the UAE as tourists and expatriate workers, along with positive business sentiments and private consumption outlook, would sustain demand for consumer electronics products across the three segments - PCs, AV devices and handsets - in our analysis. Over the next few years, we expect more product innovation, distribution channel expansion and various aggressive marketing strategies from local and international vendors as they aim to take advantage of the market's strong growth outlook.

Headline Expenditure Projections

Computer Sales: US$2.2bn in 2013 to US$2.7bn in 2017. Windows 8 tablets and ultrabooks should provide growth, with consumers increasingly interested in services that can be used wirelessly.

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AV Sales: US$1.4bn in 2013 to US$1.7bn in 2017. We believe flat-screen TV sets will remain the main growth driver.

Handset Sales: US$508mn in 2013 to US$694mn in 2017. Smartphone demand is rising rapidly, and will be further boosted by the strong take-up of 4G LTE subscriptions.

Key Trends & Developments

A survey conducted by Plug Ins concluded consumers in the UAE spend an average of AED3,000 on consumer electronics per year. This outcome is in line with BMI's data, which estimates the value of the consumer electronics market at around US$4bn in 2013. The first-of-its-kind survey looked at four key categories - smartphones, TVs, latops/tablets and cameras and was conducted through multiple channels including online and across multiple stores. The survey also revealed 51.4% of the respondents believe their purchase decisions are affected by online review/research, compared to only 22.4% who suggest their purchases were affected by print media while 59.2% said they are influenced by in-store communication prior to purchase.

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