Saudi Arabia Consumer Electronics Report Q1 2013

Includes 3 FREE quarterly updates

BMI View: Saudi consumer electronics spending will grow by about 5% in US dollar terms during 2013, powered by buoyant domestic consumption. In 2013, wage hikes and government largesse should continue to provide a boon for consumer electronics sales. Demand in 2012 was supported by a favourable trading environment with Saudi King Abdullah's US$93bn in handouts, including wage increases, supporting spending on big-ticket lifestyle products such as smartphones and flat-screen TV sets. Over BMI's five-year forecast period, Saudi Arabia is forecast to be one of the strongest economies in the MENA region, and the country will continue to be a lucrative market for consumer electronics.

Headline Expenditure Projections

Computer Hardware Sales: US$2.1bn in 2012 to US$2.2bn in 2013, +2% in US dollar terms.Forecast in US dollar terms downwardly revised owing to lower than expected PC sales growth in H112. AV Sales: US$3.2bn in 2012 to US$3.4bn in 2013, +7% in US dollar terms. Forecast in US dollar terms unchanged, with flat-screen TV set sales the main growth area.

Handset Sales: US$1.1bn in 2012 to US$1.2bn in 2013, +8% in US dollar terms. Forecast in US dollar terms unchanged, but with higher demand for smartphones and 3G handsets