Analyst Insight by Mykola Golovko - Senior Consumer Electronics Analyst
The 2008/2009 recession led to a decline in demand across a wide range of consumer products. Capital flow restrictions were particularly damaging to products reliant on consumer financing, such as cars. Consumer electronics were largely spared a drastic decline in demand and many product categories such as smartphones continued growing. Even televisions saw very few declines in the midst of the recession and in some markets sales even grew rather dynamically. While the drivers of this growth differed, the glut in sales over 2008-2010 makes for a more favourable environment for digital televisions over 2014-2016 as the sets purchased during the recession approach the end of their service life.
Volume Sales of Digital Televisions During the Recession
Source: Euromonitor International
Continue reading "Improving Prospects for Televisions on the Horizon" »
Analyst Insight by Robert Porter - Toys and Games Analyst
Euromonitor International attended the largest annual video gaming conference in the world, E3, held in Los Angeles, California, over 10-12 June. It highlighted some of the major macro drivers affecting the video games industry globally, such as technological innovations, new game releases and features as well as the strategic focus of key players in the industry. Major console companies such as Sony, Nintendo and Microsoft all had large exhibition areas to promote their latest and most powerful consoles as well as allow consumers to gain an insight into what is in store for the future from these three gaming giants. However, whether it is the power of these consoles that may change everything, other dynamics such as free-to-play games or the growing trend of mobile gaming remains to be seen.
Continue reading "E3 Sets the Key Trends for the Video Games Industry Once Again" »
Analyst Insight by Wee Teck Loo - Head of Consumer Electronics
Amazon announced its Fire Phone hoping to replicate the success it had in tablets. Amazon proved to be a formidable competitor in the US tablet market with a 25% share in 2013, surpassing established global brands Samsung (15%).
The phone boasts innovative camera capabilities, a dynamic perspective interface (3D viewing via positive parallax), and critically a deep integration of Amazon’s online products and services. In its quest to stand out from its competitors, Amazon forgot the most important success factor that made the online giant’s products popular in the US: competitive pricing. The Fire Phone pricings as indicated at the launch event is on par with flagship models from Samsung and Apple.
Consumers use tablets for media consumption which explains the success of Amazon’s Kindle Fire, but smartphones are still primarily communication devices with media-consumption functionality. Not a lot of consumers will want to pay premium prices for a highly customised smartphone that locks them into a restrictive and limited ecosystem (as compared to Android’s market place and iOS’s app store) without significant savings.
Continue reading "Amazon’s Fire Phone Won’t Set the Smartphone Market Ablaze" »
Apple recently acquired Beats by Dre for US$ 3 Billion, the company’s first major move since the release of the iPad. Both Apple and Beats have very similar marketing strategies and their product lines are sleek and modern, making the move a good fit for both companies. The important acquisition for Apple however is Beats Music, a streaming audio service. Apple had no previous foray into streaming music services so Beats Music can help Apple compete with Spotify, Pandora and Amazon’s recently announced streaming music service.
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Continue reading " Apple Acquires Beats by Dre" »
Analyst Insight by Loo Wee Tek - Head of Consumer Electronics
Apple Inc (Apple) officially announced an agreement to acquire Beats Music and Beats Electronics for a total of US$3 billion. Beat Music is the company that offers subscription-based streaming music service much like a smaller Spotify whereas Beats Electronics sells the wildly popular Beats headphones and other accessories.
Source: Beats Electronics
Continue reading "Apple’s US$3 Billion Bet on Headphones and Music Streaming" »