Middle East and North Africa: Premium products may rescue declining PC monitor segment
International, Information Technology
The MENA region* experienced an increasing trend towards mobile IT products at the start of 2012, with notebooks and tablets increasing their share of sales during January – March.
This growth is one of the reasons behind the year on year sales decrease of the desk computing market in key MENA countries. With this decline, monitors have been particularly affected, showing negative tendencies across the region, most notably in Morocco and the United Arab Emirates (UAE). However, the recovering market in Egypt and a more stable performance in the Kingdom of Saudi Arabia provide more positive trends for the monitors segment in the MENA region.
Price development
Looking solely at the consumer channel in MENA, the amount spent on monitors varied significantly. However, regarding price, there was a clear trend.
Competitively priced models under USD 100 saw widespread growth throughout the region. This entry price holds the most significant share in Egypt and the UAE. While in Morocco and Saudi Arabia the price band under USD 100 is smaller, it recorded higher growth, with 18.5 inch monitors selling particularly well at this price point.
Premium opportunity
The remainder of 2012 could be a challenging time for monitors in the MENA region as notebooks are steadily becoming more affordable. However, premium segments, with their wealth of opportunities and growth potential, could positively influence the sales of monitors.
3D technology, which currently represents less than 1% of volume sales in MENA markets, is a niche segment gradually beginning to see growth in different countries. The number of stores selling 3D Monitors is on the rise and the sales per shop are increasing slightly.
However, LED monitors are the products providing a greater level of consistent growth. On a country level, accounting from 17% to 70% of total volume sales (Q1 2012), this segment represents a significant opportunity in a number of the key markets in the region. When looking at the further growth of this segment it is worth considering that LED Monitors are affected by the current pricing trends as the average spend on an LED Monitor fell below USD 150 in the latest quarter, Q1 2012.
*Middle East and North Africa
.
