Brazil Consumer Electronics Industry Update Quarter 2 2012

Includes 3 FREE quarterly updates

BMI projects Brazil consumer electronics spending will grow by about 11% in US dollar terms in 2013 to
US$40.0bn. In 2013, sales of some consumer electronics devices are expected to slow due to currency
weakness and high household indebtedness. However, growth areas will include smartphones, tablets and
large-screen TV sets. The extension of the government's Lei Do Bem programme to encourage local
production of various products should boost the availability of affordable smartphones. Consumer
electronics retailers reported strong growth in the final quarter of 2012, as shipments of smartphones,
notebooks and flat-screen TV sets surged. In the run-up to the peak end-of-year shopping season, consumer
confidence appeared to be resilient, despite concerns about slowing economic growth. . However, we expect
the Brazilian consumer to feel the effects of high levels of household debt and there are signs that banks are
becoming more wary about increasing lending..
Headline Expenditure Projections
• Computer hardware sales: US$12.6bn in 2012 to US$13.2bn in 2013; +4% in US dollar terms. Our
forecast unchanged following stronger sales in H212, boosted by the release of a new generation of
Windows 8 notebooks and tablets.
• AV sales: US$10.8bn in 2012 to US$11.6bn in 2013, +68% in US dollar terms. Forecast in US dollar
term unchanged, with flat-screen TV sets expected to provide the most dynamic development.