Bahrain’s consumer electronics devices market, defined as the addressable market for computing devices, mobile handsets and AV devices, is forecast at US$432mn in 2010. This is expected to increase to US$522mn by 2014, thanks to a growing sophisticated market for feature-rich digital lifestyle products and ongoing development of the electronics retail sector.

Consumer electronics spending is expected to bounce back in 2010, after taking a hit in 2009 from rising unemployment, a decline in asset prices and a 4.8% contraction in Bahrain’s population. Product innovation, lower prices and greater vendor and channel sales flexibility will drive demand for consumer electronics, along with a resumption of low single-digit population growth from 2011.

Computers

Computer hardware accounted for around 48% of Bahraini consumer electronics spending in 2009. BMI forecasts Bahraini domestic market computer sales (including notebooks and accessories) of US$211mn in 2010, up from US$201mn in 2009. Computer hardware compound annual growth rate (CAGR) for the 2010- 2014 period is forecast at about 5%, led by notebooks and netbooks, which currently account for about 60% of sales. In 2009, Bahraini fixed and mobile telecoms operators launched a series of services and promotions targeted at PC users.

AV Devices

AV devices accounted for around 37% of Bahraini consumer electronics spending in 2009. The Bahraini addressable AV device market is forecast at US$157mn in 2010. The market is expected to grow at a CAGR of 3% during 2010-2014, driven largely by demand for LCD and plasma TV sets, to a value of US$175mn in 2014. In the current economic climate, Bahraini consumers are looking for highend features and performance at more affordable prices.
Mobile Handsets

Mobile handset sales accounted for around 15% of Bahraini consumer electronics spending in 2009. Bahraini market handset revenues are expected to grow at a CAGR of 8% to US$86mn in 2014, as mobile penetration passes 100% in 2010 and the launch of commercial services by STC helps stimulate competition in the sector. There will be growing demand for smartphones and 3G handsets, with the increased roll-out of 3G networks, and the launch of BlackBerry services by Zain and new operator VIVA.

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