Taiwan's consumer electronics devices market, defined as the addressable market for computing devices, mobile handsets and AV products, is projected to be worth about US$8.8bn in 2012. This is expected to increase to US$11.4bn by 2016 at a CAGR of 6%, slower than the preceding five years. In H111, vendors reported disappointing sales of major categories of consumer electronic products. LCD TV set sales were down by about 10% compared with H110. Meanwhile, handset sales were also down by a single-digit factor, while notebook sales were flat. BMI has downwardly adjusted its forecast for 2012 spending after the Taiwan economy slipped into a technical recession in Q411 and appeared set to face further weakness in the first half of 2012.
However, there are some growth areas. Taiwanese vendors reported stronger than expected local ales of tablets, while smartphone sales grew by a double-digit factor, although feature phone shipments were down. Smartphones comprise above 50% of handset shipments in 2011, while LED TV sets accounted for 20% of LCD TV set sales and rising.
Computers accounted for about 61% of Taiwanese consumer electronics spending in 2011. BMI forecasts Taiwanese computer hardware sales of US$5.3bn in 2012, up by a single-digit factor year-on-year (y-o-y). With PC penetration at about 80% in 2011, CAGR for the 2012-2016 period is forecast at 6%, and despite competition from new form factors there will be growth areas in multimedia and entertainment notebooks as well as tablets. In 2011, Taiwanese telecoms operators announced sizable tablet procurements.
AV devices accounted for about 19% of Taiwanese consumer electronics spending in 2011. In 2012 Taiwan's domestic video, audio and gaming device market is projected at a value of nearly US$1.7bn. The market is expected to grow at a CAGR of 6% between 2012 and 2016 to a value of US$2.1bn in that year. The analogue switch-off, scheduled for July 1 2012, should boost sales of TV sets. However, the market will rely on product innovation for continued momentum, with growth areas including LED TV sets, 3D TV, Blu-ray DVD players and e-readers.
Taiwanese mobile handset sales accounted for about 20% of Taiwanese consumer electronics spending in 2011. Total handset sales are expected to grow at a CAGR of about 9% through to 2016, with the market will be driven mainly by replacements as penetration is already above 123%. The fastest sales growth will be of 3G handset units and smartphones, which comprised above 60% of handset sales in H211.