Home > Tablets declining, but smart phones and wearables experience strong demand

Tablets declining, but smart phones and wearables experience strong demand

Editorial
article image ​The demand for consumer electronics continues to grow, according to the GfK TEMAX report on Technical Consumer Goods for Q1 2015.

The demand for consumer electronics continues to grow, according to the GfK TEMAX report on Technical Consumer Goods for Q1 2015.

In the first quarter of 2015, the Technical Consumer Goods market grew by 9.2 percent, the strongest performance in a number of years. Particularly strong performance was seen in the area of telecommunications, which experienced double-digital value growth.

The first quarter of the year was notable for the first interest rate cut since Q3 2013, which brought the base rate down to 2.25 percent. This increased consumer confidence, resulting in a spurt of spending.

Telecommunications devices saw a 25 percent growth in sales for Q1 2015, driven mostly by smartphones and wearables. Because of the weakening Australian dollar and new handset launches, the average price of smartphones in Australia were 15 percent higher compared to Q1 2014. But sales volumes also increased.

In wearables, broadening ranges, increased distribution and marketing activity drove strong demand. Health and fitness trackers were the largest wearable category, accounting for 9 of every 10 wearable device sales, with Smart and GPS watches making up the remainder. Overall value sales saw close to a four-fold increase on the same quarter last year.

IT had a modest growth of 0.2 percent in this same period of time, with the recovery in sales from negative numbers led by mobile PCs and monitors.

Mobile computing recorded its first double-digit growth since 2009, thanks to a huge surge in volumes of lower-priced models. In contrast, tablet sales continued to decline rapidly. There was also significant demand for large screen sizes, with the upgrade imperative leading to a strong growth in monitor sales.

Q1 2015 was also significant for the TV market, which experienced its first value sales growth since quarter 1, 2010, driven primarily by super-large screens that are becoming more affordable.

GfK TEMAX is an index developed by GfK to track the technical consumer goods markets. The findings are based on surveys carried out on a regular basis by the retail panel of GfK. The retail panel comprises data from over 425,000 retail outlets worldwide.

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