Report: Kuwait Consumer Electronics Report Q4 2009

Abstract

Kuwait’s consumer electronics devices market, defined as including computing devices, mobile handsets, and video audio and gaming products, is projected to increase to US$939mn by 2013, driven by growing popularity of LCD TV sets, 3G handsets, notebook computers and other key products, and by ongoing expansion of the retail sector. BMI predicts that per capita consumer electronics spend will reach US$241 by 2013, from US$199 in 2009. In 2009 there were signs that the impact of the slowdown, although noticeable, was not too severe. A number of electronics retailers, including the largest, Alghanim, reported that sales were generally holding up. BMI projects that Q109 could turn out to have been the low point for the market, but there are risks to the downside as expatriates leave the country and Kuwaitis lose their jobs.

Computers

Computer hardware accounted for around 50% of Kuwaiti consumer electronics spending in 2008. BMI projects Kuwait’s domestic market computer sales (including notebooks and accessories) of US$341mn in 2009, up from US$330mn in 2008. Computer hardware compound annual growth rate (CAGR) for the 2009-2013 period is forecast at about 9%, with the popularity of wireless access technologies driving notebook sales.

AV Devices

AV devices accounted for around 35% of Kuwaiti consumer electronics spending in 2008. Kuwait’s domestic AV device market is projected at US$239mn in 2009. The market is expected to grow at a CAGR of 3% between 2009-2013, to a value of US$267mn in 2013. More ‘big box’ electronics stores offering a wider choice and often better prices will help stimulate sales.

Mobile Handsets

Mobile handset sales accounted for around 16% of Kuwaiti consumer electronics spending in 2008. Kuwait’s market handset sales are expected to grow at a CAGR of 13% to US$208mn in 2013, as mobile subscriber penetration reaches 192%. Following the entry of a new mobile network operator, more competition will drive the replacement handset market, and there will be growing demand for smartphones and 3G handsets.