BMI was already forecasting another year of USD consumer electronics spending contraction in Malaysia in ---- as a result of the impact of ringgit depreciation to an average of MYR-.-/USD in ---- from MYR-.-/USD in ----. This impacts our forecast directly and device sales via reduced affordability of imported devices. ...This means households and enterprises will substitute for cheaper options and, to a lesser extent, defer purchases. However, the more significant factor is the cannibalisation of tablet sales by smartphones - especially phablets, as those have been popular with consumers and are a strong substitute product for small screen tablets. The audio-visual (AV) market is also forecast to contract again in ----, but nonetheless strengthen considerably from ----. ...The audio-visual (AV) market is also forecast to contract again in ----, but nonetheless strengthen considerably from ----. Unlike the PC segment, there is not a negative product trend resulting in a
...Computer Hardware Sales: USD-.-bn in ---- to USD-.-bn in ----, a compound annual growth rate (CAGR) of -.- . Outlook downgraded in Q- update as tablet demand cannibalisation by smartphones escalated with a further decline in PC sales in H--- reported by local retailers. AV Sales: USD---mn in ---- to USD---mn in ----, a CAGR of -.- . AV outlook is improving as the ringgit appreciates and smart/Ultra-HD TV sets trigger upgrades, which will enable a modest recovery following the double-digit rate of declines in ---- and ----. Handset Sales: USD-.-bn in ---- to USD-.-bn in ----, CAGR of -.- . ...Handset Sales: USD-.-bn in ---- to USD-.-bn in ----, CAGR of -.- . Boost from ringgit appreciation and income growth trends will be offset as the smartphone boom runs out of steam in an increasingly saturated market.
...BMI View: The forecast for ---- was downgraded in the Q- update as PC sales decreased faster than expected, with tablet sales particularly hard hit by competition from phablets. Even though US dollar spending will again contract, the hit will be much smaller than in ----, when rapid ringgit depreciation and the new Goods and Sales Tax hurt spending levels. ...
