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: Following on the back of weak performance in 2015 when lira depreciation hit Turkey's
consumer electronics market, the attempted coup in July 2016 and subsequent government response means
we now envisage an extended period of weak performance. Political and economic risks are elevated, while
lira depreciation will be a drag on performance throughout the forecast period by limiting the purchasing
power growth of Turkish households in global markets - ie for imported devices. We downgraded the
forecast in Q4 following the attempted coup and now envisage device spending will increase at a CAGR of
0.5% over 2016-2020.
Latest Updates & Industry Developments
? Computer Hardware Sales: Tablet spending is being cannibalised by phablets, and although hybrid
notebooks offer vendors growth opportunities, our core outlook is for overall computer hardware
spending to contract at a CAGR of -0.2% over 2016-2020.
? AV Sales: Ultra-HD TV set upgrades should boost the segment as unit prices decline and trigger
upgrades, but digital camera and mp3 player cannibalisation will still be a drag. The market is forecast to
expand at a CAGR of 0.4% over 2016-2020.
? Handset Sales: We forecast a CAGR of 0.8% over 2016-2020 to USD6.79bn, but with growth
decelerating throughout the forecast period. Upgrades to 4G smartphones will be a boost in 2016, but
over the medium term smartphone market saturation will see spending growth slow.