Consumer durables is a cataloguing of consumer goods that are not essential to be bought very often as they are fashioned in a way so as to last for an extended period of time. Profits in the consumer durables sector were most profoundly…
BMI View: We hold positive medium-term outlook for the Philippines' IT market, which has strong
domestic economic momentum that is relatively insulated from China and commodity market risks that
could potentially drive outperformance. Rising incomes will benefit the PC market, but we adopted a more
cautious outlook this quarter due to potential for smartphones to cannibalise spending. The enterprise
software and services outlook remains very strong, and will be the main driver of an IT market spending
CAGR of 8.1% throughout 2016-2020.
Latest Updates & Industry Developments
? Computer Hardware Sales: PHP107.4bn in 2016 to PHP124.2bn in 2020 at a compound annual growth
rate (CAGR) of 3.7%. Downgrade in Q4 as the risk of Filipinos bypassing the PC era has increased with
a rapid expansion of the smartphone market in 2015 and H116.
? Software Sales: PHP30.9bn in 2016 to PHP44.7bn in 2020 at a CAGR of 9.6%. Solid growth
momentum in the software segment with large and SME investment potential over the medium term..
? IT Services Sales: PHP68.7bn in 2016 to PHP113.7bn in 2020 at a CAGR of 13.4%. The services
segment is forecast to outperform, based on the broader adoption of outsourcing and cloud computing
technologies by the public and private sectors.