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Egypt’s consumer electronics devices market, defined as the addressable market for computing devices, mobile handsets and video, audio and gaming products, is projected at nearly US$3.2bn in 2010. This is expected to increase to around US$4.9bn by 2014, driven by the growing affordability and popularity of digital lifestyle products. Key factors behind the forecast growth in Egypt’s consumer electronics sales include the emergence of a more affluent middle class and the growing acceptance of modern retail concepts. The market also benefits from youthful demographics, while government initiatives such as ‘PC for Every Home’ will also support growth. Spending on consumer electronics is expected to accelerate in 2010-2011, in line with falling consumer price inflation, improved credit availability, and population growth. Egypt is expected to be one of the fastest-growing consumer markets in the region over the next few years, although a number of constraints, including low disposable incomes, economic disparities, low computer literacy and channel inefficiencies, could prevent the market from fulfilling its potential. ComputersComputer hardware accounted for around 26% of Egypt’s consumer electronics spending in 2009. BMI projects Egypt’s domestic market computer sales (including notebooks and accessories) of US$809mn in 2010, boosted by government information and communication technology (ICT) programmes like ‘Computer for Every Student’ and ‘PC for Every Home’. Computer hardware compound annual growth rate (CAGR) for the 2010-2014 period is forecast at 12%, as PC penetration rises from 7% to around 19% by 2014. [Prod: add RHS to second row of key] AVAV devices accounted for around 10% of Egyptian consumer electronics spending in 2009. Egypt’s domestic AV device market is projected at US$319mn in 2010. The market is expected to grow at a CAGR of 9% between 2010-2014 to a value of US$452mn in 2014. Mobile HandsetsMobile handset sales accounted for around 64% of Egyptian consumer electronics spending in 2009. Egyptian market handset sales are expected to grow at a CAGR of 11% to nearly US$3.2bn in 2014, as mobile subscriber penetration reaches 132%. The market will be dominated by low-spending prepaid subscribers, but in February 2010 the Egyptian government placed a temporary ban on sales of low-cost Chinese handsets.

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