Abstract
Pakistan’s consumer electronics market, defined as including computing
devices, mobile handsets, and AV products, is forecast at around US$1.4bn
in 2009. Underlying demand will grow at a compound annual growth rate
(CAGR) of about 10% to US$2.1bn by 2013, but market size will be restricted by
a sizable grey market of smuggled or illegally assembled products. The
market’s considerable latent potential is currently depressed by lack of
IP protection, an unstable economic and security situation, and weak
distribution channels. Growth will be driven, however, by growing
affordability and rising penetration of key products and more credit
availability. Reform of often high taxes and tariffs on products ranging
from computers to prepaid mobile cards would also boost the market.
Computers
Computers accounted for around 20% of Pakistan’s consumer
electronics spending in 2008. BMI forecasts Pakistan’s domestic
market computer sales (including notebooks and accessories) of US$234mn in
2009, up from US$220mn in 2008. Computer hardware CAGR for the 2009-2013
period will be around 7%, with the corporate and small and medium-sized
enterprise (SME) segments accounting for above 50% of sales.
AV
AV devices accounted for around 34% of Pakistan’s consumer electronics
spending in 2008. Pakistan’s domestic AV device market is projected
at US$524mn in 2009. The market is expected to grow at a CAGR of 14%
between 2009-2013, to a value of US$883mn in 2013. TV sets remain the core
product in this category, but the growing availability of smuggled colour
televisions is a market inhibitor.
Mobile Handsets
Pakistan’s market handset sales are expected to grow at a CAGR of 11% to 16.9mn units
in 2013, as mobile subscriber penetration reaches 85%. Revenues growth will
be slower due to lower ASPs of mobile handsets, with most handsets sold at
a sub- US$40 price-point. Another issue is a declining growth rate of
mobile subscriber penetration, which is now above 50%.
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