Favourable market conditions have been fueling robust consumer electronics spending in the UAE over the past three quarters and the trend is expected to continue throughout the year, according to Dubai-based Jacky’s Electronics.
Ashish Panjabi, the retailer’s chief operating officer, said they are expecting their sales figure to post a double-digit growth of about 15 per cent in 2011 as the retail sector benefit from renewed domestic consumer confidence, improved lending conditions and a relatively dynamic electronics industry.
“We’ve definitely seen a better year from a sales point of view. One [indication] is the fact that [consumers] are buying more gadgets these days due to the multitude of options available in the market,” he said.
Heightened competition among major global brands such as
Apple,
Research in Motion (RIM),
Samsung and
Nokia, to name a few, has kept the mobile electronics industry bustling this year with new product launches at competitive pricing.
“Apple and RIM, for instance, release new iPhone and BlackBerry smartphones every 12-18 months and that kept people buying. The same goes with tablets. I think another major driver has been the finance [factor]. Banks have started offering [deferred payment options] at low interest rates, making it easier for consumers to shop and manage their credit,” he said.
Panjabi added that another trend they have noticed was the price squeeze in some product segments such as notebooks, which saw average selling cost plummeting by 25 per cent.
“Many laptops are now sold at a range of Dh1,999 to Dh2,499 [$544 to $680]. Three years ago, our average selling price [for a laptop] was about Dh3,000. Thankfully, we’re able to sell larger volumes to compensate for the reduced price,” Panjabi said.
Consumers’ taste and preference have likewise evolved over the years, thus influencing their buying habits, he added.
“Gone are the days when people buy a PC or a phone on the basis of technical specifications alone. Today it’s about the [product innovation] and user experience, how a product feels in your hand and the experience you can get out of it. I think this is one of the trends shaping the industry today,” he said.
Tablet war brewing
In the UAE, the tablet market continues to be dominated by Apple, which launched its iPad 2 in the first quarter of 2011, hoping to emulate the success of its predecessor, said Panjabi.
For
Jacky’s Electronics, Apple accounted for about 85 per cent of the tablets they sold in 2010. However, the computer giant’s share has declined this year to just about 70 per cent based on Jacky’s sales figure.
“The decline was not due to Apple losing market share per se. It had more to do with the fact that the whole industry has grown so much and there were more brands that came out with their own tablets. Considering that, it’s just natural that there will be some erosion of Apple’s market share. But for us in terms of sales, Apple still represents 70 per cent of sold tablets, which is a fairly strong rate,” the Jacky’s executive said.
Technology research firm
Gartner reported in April that Apple will likely continue to rule the global tablet market until 2015. Apple’s international market share has been recorded at 69 per cent, enjoying a comfortable lead when compared to the 20-per-cent share occupied by Google’s Android-backed tablets.
Panjabi said other brands are challenging Apple’s tablet dominance in the UAE. Samsung, which runs the Android operating system, is one of the leading contenders and unlike some European and Asia-Pacific markets, the UAE has not been affected by the ongoing legal dispute between Apple and the South Korean firm.
“We’ve also seen Asus doing quite well because they have been innovative with their design. They have a detachable keyboard that makes a tablet look like a hybrid netbook. Acer also has a market presence. Another newcomer, Viewsonic, also had positive feedback from customers,” he said.
Smartphone sales still upbeat
Attractive and competitive packages from telecom service providers Etisalat and du have helped encourage demand for smartphones in the country, Panjabi said.
“Smartphones have become more fashionable. But another factor that has been boosting sales of smartphones are their social networking capabilities. People use their phones not just for texting or calling, but also for Facebook, Twitter, FourSquare and the likes,” he added.
Nokia, which faces fierce competition from Samsung, RIM and Apple, continues to have a strong sales performance in the Middle East, Panjabi said.
“I think Nokia is one of those companies that are in transition right now. [But] we’ll see a lot more in the next 12 months once [their] Windows device has been released. At the moment, their N9 phone is highly in demand and we’re struggling to get enough stock to sell,” he mentioned.
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