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Taiwan’s consumer electronics devices market, defined as the addressable market for computing devices, mobile handsets and AV products, is projected to be worth nearly US$9.4bn in 2010. Vendors expected recovery to gather pace in 2010 and spending is forecast to increase at a compound annual growth rate (CAGR) of 3% to nearly US$10.3bn by 2014.
In Q110, demand for certain high-end product categories, including LCD TV sets, was slower than expected, despite price-cutting, Consumer sentiment will continue to be affected by economic uncertainty and rising unemployment, but there will be a number of growth opportunities including LED and 3D TV sets, high-end notebooks and tablets, and smartphones.


Computers


Computers accounted for around 49% of Taiwanese consumer electronics spending in 2009. BMI forecasts Taiwanese computer hardware sales of US$4.6bn in 2010, up by a single-digit factor year-on-year (y-o-y). With PC penetration at around 74%, CAGR for the 2010-2014 period will be around 5%, but there will be growth areas in multimedia and entertainment notebooks and netbooks. The release of Microsoft’s Windows 7 operating system could help to drive a new PC upgrade cycle, but much will depend on business confidence.


AV


AV devices accounted for around 36% of Taiwanese consumer electronics spending in 2009. In 2010, Taiwan’s domestic video, audio and gaming device market is projected a value of US$3.3bn. The market is expected to grow at a CAGR of 4% between 2010 and 2014 to a value of US$3.9bn in that year. The market will rely on product innovation for continued momentum, with growth areas including HDTV sets, Blu-Ray DVD players and e-readers.


Mobile Handsets


Taiwanese mobile handset sales accounted for around 15% of Taiwanese consumer electronics spending in 2009. Total handset sales are expected to grow at a CAGR of about 2% to 8.2mn units in 2014, with the market driven mainly by replacements as penetration is already above 100%. The fastest sales growth will be of 3G handset units and smartphones, with operators planning to substantially increase smartphone procurements in 2010.


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