The total consumer electronics market in the UAE is expected to grow by 5.97 per cent to AED 14.2 billion this year compared to AED 13.4 billion last year, an industry expert said.
Isam Arshad, a research analyst at Euromonitor International, told TechRadar Middle East that mature products such as laptops, digital cameras and LCD TVs are struggling to remain in demand and manufacturers are keen to push for premium features and technological improvements to boost sales.
“People are looking to buy TVs with sizes over 50 inches and, at the same time; most of the key retailers are also displaying these sizes at their stores. The unit prices for OLED TVs are declining and that is attracting customers. Even the manufacturers have come to a consensus that the prices are extremely high for them to push in the market,” he said.
According to the research firm, the retail value of TV sales is expected to fall by 10.52 per cent to AED 1.7 billion this year compared to AED 1.9 billion last year. Even laptop sales are expected to fall by 12.5 per cent to AED 1.4 billion this year compared to AED 1.6 billion a year ago.
Arshad believes that one of the major reasons people are not buying conventional laptops is due to the cannabilisation of smartphones with people using Microsoft Office apps on their smartphones more than on laptops. However, he does see a surge in demand for gaming laptops. while laptop sales.
Wearables on the rise
Wearables, which are gaining traction in the region with the launch of new models, are expected to reach AED 542 million this year compared to AED 446 million a year ago, witnessing a growth of 21.53 per cent.
“The injection of luxury and fashion brands is also attracting fashionistas, who are more interested in aesthetics than technology,” Arshad said.
However, he said that newer categories such as wireless speakers and wearable electronics are subject to lower price erosion as manufacturers make a concerted effort to incorporate more features and better audio quality to avoid competing in the low-end segment.
He added that manufacturers are incorporating more features (voice assistants) at more affordable price points and voice assistants have become more refined now and can recognise any accent.