Under our revised consumer electronics market forecast we now expect a second successive year of spending contraction in ---- as a result of further depreciation of the peso against the US dollar. We forecast consumer electronics spending - including PCs & accessories, AV & gaming products and mobile handsets & smartphones - will decrease by -.- in ---- to a total of USD--.-bn. ...Real GDP growth is forecast at -.- in ----, up from -.- in ---- and -.- in ---- - while private final consumption is forecast to grow by -.- in real terms in ----. The segments that will again be worst affected by peso depreciation are the PC and AV segments, due to the big-ticket nature of computers and TV sets to the majority of Mexican households. Additionally, handset replacements are much more likely to be considered a necessity, while wider vendor and retailer margins in ...The segments that will again be worst affected by peso depreciation are the PC and AV segments, due to the big-ticket nature of computers and TV sets to the majority of Mexican households. Additionally, handset replacements are much more likely to be considered a necessity, while wider vendor and retailer margins in
...BMI View: The consumer electronics device spending forecast for Mexico was downgraded in the Q- update and we now envisage a CAGR of -.- over --------- to USD--bn in ----. The main catalyst for the revised forecast was a shift in our Country Risk team s expectation away from medium-term peso appreciation. ...The main catalyst for the revised forecast was a shift in our Country Risk team s expectation away from medium-term peso appreciation. The Mexican devices market does however still have considerable potential due to relatively low device penetration rates and strong domestic economic growth momentum forecast, particularly from ----. Stronger sentiment should unlock first-time buyers in categories such as PCs and flat-screen TV sets. ...Stronger sentiment should unlock first-time buyers in categories such as PCs and flat-screen TV sets. There is, however, downside for the local electronics industry as a result of intense competition from East Asian production centres, but the industry is embedded in Mexico and the advantages of NAFTA participation, if exports continue to contribute to overall Mexican economic performance.
...BMI View: Mexico s consumer electronics market has significant potential for growth over the medium term through a combination of rising incomes and existing relatively low device penetration rates. The outlook has however weakened in the Q- update as a result of further peso depreciation in ---- and the shift in the forecast from peso appreciation against the US dollar --------- to stability. ...
