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Brazils domestic consumer electronics devices market, defined as the addressable market for computing devices, mobile handsets and video, audio and gaming products, is estimated at US$30.2bn in 2011.

Consumer electronics retailers reported a stronger-than-expected demand rebound in 2010, which left some vendors struggling to catch up. Sales of flat-screen TV sets surged while high double-digit year-onyear (y-o-y) growth was recorded in handset shipments.

The positive results from 2010 are expected to have continued throughout 2011 despite recently introduced credit-cooling measures. Our forecasts are marginally revised upwards for the 2012-2016 period to take into account the positive environment for consumer electronics products. Demand for consumer electronics is expected to increase to US$47.662bn by 2016, driven by the growing popularity of digital lifestyle products such as LCD and LED TV sets and smartphones. Government PC procurement and subsidised handset programmes will also help to support growth.

Computer

Computer hardware accounted for about 39% of Brazilian consumer electronics spending in 2010. BMI maintains its forecasts for Brazils computer hardware sales (including notebooks and accessories) at US$11.5.bn in 2011. PC penetration, estimated at 29% in 2010, could climb to 44% by 2016. Computer hardware CAGR for the 2012-2016 period is forecast at about 12%, driven by sales of notebooks and netbooks.

AV Devices

AV devices accounted for about 34% of Brazils consumer electronics spending in 2010. Brazils domestic AV device market is projected at about US$10.4bn in 2011. Digital TV set sales will be the main driver of an estimated 2012-2016 CAGR of 7.2%, with other growth drivers including digital cameras and portable media devices. In 2010, sales of flat-screen TV sets received a strong boost from the FIFA World Cup in South Africa, which left some vendors struggling to keep up.

Mobile Handsets

Mobile handset sales accounted for about 27% of Brazilian consumer electronics spending in 2010. Brazils market handset sales are expected to grow at a CAGR of 10% to US$14bn in 2016, with mobile subscriber penetration forecast to just miss 150% by 2016. Penetration is still considerably lower than in many other emerging markets, though more rural markets will see mobile services arrive over the next five years. Affordable smartphones are a key focus for operators and are expected to have accounted for up to 20% of handset sales in 2011.