� Business Monitor International Ltd Page -- we have a positive outlook for ---- in high-income Australia where the preference for premium devices is strong. Our AV forecast for ---- is also brighter, but further declines are expected in the digital camera segment that will make it the underperforming segment in the devices market. ...The market has been in decline following the LED/LCD TV set upgrade boom, with even HD set ownership widespread in Australia by ----, but smart and Ultra-HD sets have emerged as upgrade triggers. Smart TVs carry little price premium, but there is some upside as sales of Ultra-HD TV sets are growing and as a result of high average selling prices even a relatively small increase in volumes in the very high income niche will have a disproportionate impact on overall AV spending. Finally, the handset segment is forecast to outperform again in ----, with growth of -.- . The high income profile of Australian consumers has resulted in high average selling prices, with a strong bias towards Apple s iPhone and other flagship models. Furthermore, short replacement cycles mean that despite market maturity - with smartphone penetration estimated at -- of Australian adults aged --+ at YE-- - the market will continue to be lucrative to vendors despite slowing volume growth.
...The Australian consumer electronics market fared slightly better than anticipated in ---- in a climate of local currency depreciation, but still contracted by -- in USD terms. We forecast a marked improvement in ----, with consumer electronics spending is forecast to grow by -.- to USD--.-bn as the market emerges from the lows of ----, which was the third successive year of contraction. ...In addition to shallower depreciation, we believe more supportive product trends will contribute to a return to growth for computer hardware spending. Tablet volumes declined sharply in ---- after saturation following rapid growth ---------, while traditional shipments were hit by the concentration of replacement spending in ---- by the withdrawal of Microsoft support for XP. The decline is expected to stall in the tablet market in ---- as it stabilises around replacement volumes, and there is upside in the notebook market where hybrid devices were an area of strong growth in H--- and ...Tablet volumes declined sharply in ---- after saturation following rapid growth ---------, while traditional shipments were hit by the concentration of replacement spending in ---- by the withdrawal of Microsoft support for XP. The decline is expected to stall in the tablet market in ---- as it stabilises around replacement volumes, and there is upside in the notebook market where hybrid devices were an area of strong growth in H--- and
...BMI View: We made a small downward revision to the forecast for Australian consumer electronics devices spending in the Q- update, but our core assessment of device trends is unchanged. We forecast a CAGR of -.- over --------- for total device spending. ...
