The global market for micro servers is observing massive call for competent computing goods, which has obliged market players to upturn their concentration on product invention and development of the current assortment. Mergers, acquisit…
BMI View: South Korea's devices market is lucrative, but is characterised as low-growth - where an
affluent and tech hungry consumer base supports high average selling prices and relatively short
replacement rates. However, most growth opportunities are severely depleted due to high penetration rates.
The rate of diffusion for new products resulted in a sharp drop off in smartphone, table and flat-panel TV
set volumes throughout 2013-2016, and so the market contracted. However, as volumes settle around the
replacement rate in the medium term, we forecast a much more stable devices market, with spending
expected to increase at a CAGR of 2.0% throughout 2016-2020.
Latest Updates And Industry Developments
? Computer Hardware Sales: USD8.5bn in 2016 to USD9.4bn in 2020, a CAGR of 2.6%. Hybrid
notebooks faring well, but tablets that have much weaker differentiation from smartphones are facing
cannibalisation by the popularity of phablets in South Korea, which would be a drag on segment growth.
? AV Sales: USD2.9bn in 2016 to USD3.2bn in 2020, a CAGR of 2.3%. UHD upgrades are boosting the
AV market, a welcome trend after multiyear decline in the wake of the initial flat-panel upgrade boom.
? Handset Sales: USD6.0bn in 2016 to USD6.2bn in 2020, a CAGR of 0.9%. Most upgrade triggers
diminished with ownership of phablets and 4G handsets already widespread, which means there is a weak
growth outlook for the handset segment, though mass market adoption of complementary (rather than
handset cannibalising) wearables could boost the outlook.