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Apple and Samsung lead the way within the consumer electronics market

Press Release   •   Dec 04, 2013 11:45 GMT

The global consumer electronics market has been estimated to hit a total value of approximately $1.6 trillion by the end of 2018.

According to a recent market report, 'Consumer Electronics - Global Trends, Estimates and Forecasts, 2011-2018,' geographical analysis shows the highest compounded annual growth rate (CAGR) of 17.6% is foreseen from the Asia-Pacific region during the period 2011-2018.

The Middle East is not far behind with a CAGR of 17%, followed by Africa at 16.9%. Japan has been forecast to experience a growth rate of 13.9%.

The industry is primarily supported by a number of key sectors, including 'Analogue & Digital TV', 'Tablet', 'Digital Cameras & Camcorder', 'Personal Computers' and 'Video/Audio Equipment'.

The consumer electronic industry is a highly diverse and growing industry. The industry is both capital intensive and price sensitive.

The industry is characterised by a winner-takes-all environment in which two giants -- Samsung and Apple -- are grabbing the lion's share of revenue growth and profit share.

Over the 12-month period ending March 31 2012, Apple generated $58.5 billion in EBITDA -- more than 2.5 times than that of the rest of the sectors companies combined (excluding Samsung). And Samsung recorded EBITDA of $41.8 billion -- nearly two times that of the rest of the players combined (excluding Apple).

The Next Four -- Panasonic, Sony, LG and Sharp -- are suffering acutely: Their combined revenues fell by 8% and their profits dropped by 36% over the same tie period, their profit margins were just 20-35% of those of The Top Two.

The broad product portfolio of the consumer electronic industry helps it to acquire strong market position and robust financial performances to strengthen investor confidence to provide capital for future growth.

Furthermore, rapid innovation in technology and consistent quality at low prices due to automated manufacturing are set to boost the industry.

For more information on the global consumer electronics market, see the latest research: Global Consumer Electronics Market

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