The UAE’s consumer electronics market, which includes computer peripherals, mobile phones and audio/video products, will be worth $2.77 billion in 2010, said a report.

This expected to increase to $3.67 billion by 2014, driven by the popularity of new electronic devices such as LED and 3G TV sets, 3G mobile handsets, smartphones, feature-rich notebooks and Blu-ray disc players, said a market research report published by companiesandmarkets.com.

Modest single-digit growth in consumer electronics sales was forecast for 2010, following a market pickup in the fourth quarter of 2009.

The report said sales were sluggish in January 2010. “While large consumer electronics retailers such as Jacky's and Jumbo Electronics expect better times ahead, they remained cautious,” it added.

“The shift towards more cautious spending patterns is likely to persist well into 2011 and, following the Dubai financial crisis, the coming years will bring about a shift in the balance of population and GDP in Abu Dhabi's favour,” it explained.

While computer hardware accounted for 57 per cent of the UAE's consumer electronics spending in 2009, it was seen as being accountable for up to $1.57 billion in 2010, up from $1.49 billion in 2009.

The compound annual growth rate (CAGR) for sales of computer hardware over 2010-2014 is forecast at about 8 per cent. Stronger demand in the notebook sector was the main growth driver in 2009 as consumers felt the benefits of aggressive channel promotions, the report noted.

AV devices accounted for about 30 per cent of consumer electronics spending in the UAE in 2009, the report said.

“The addressable Emirati AV device market is projected at $855 million in 2010,” the report added. “The market is expected to grow at a CAGR of 4 per cent between 2010 and 2014 to reach $1.07 billion by the end of the forecast period. The rollout of high definition broadcasting will drive demand for premium TV sets and Blu-ray devices.”

Mobile handset sales, which accounted for approximately 13 per cent of UAE consumer electronics spending in 2009, are expected to grow at a CAGR of 5 per cent to hit $416mn through to 2014, when mobile subscriber penetration is forecast to reach 254 per cent.

“Sales will be dominated by the replacement market and revenues driven by demand for smartphones and 3G handsets, despite problems concerning availability of the Apple iPhone in the Emirates,” the report said. – TradeArabia News Service