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ME household expenditure on electronics up 8pc in 9 months

DUBAI — The Middle East, Africa and Europe posted an 8.1-per cent growth each in household expenditure on electronic consumer equipment sales during the first nine months of 2007 compared to the same period a year ago. Global sales are seen to top Dh2.27 trillion ($618.6 billion) for the whole of 2007.

The three world regions were second to Asia and Oceania, which had an 11.1 per cent rise, in the number of electronic household appliances and gadgets bought during the said period, according to US-based Consumer Electronics Association (CEA).

It said that the Americas recorded only a 5.8-per cent growth, although the US led all other countries surveyed with an average per household spending of Dh4,641.66 ($1,264) for such technical equipment as LCD TVs, mobile phones and computers.

Western Europe came second, with each household spending around Dh3,775 ($1,028) for the same products from January to September while Chinese households are seen to spend 10 times that amount for the whole year.

CEA, which made the survey in collaboration with the world's fifth biggest market research organisation GfK Group, said that consumers will spend Dh180 billion ($49 billion) more than the 2007 sales forecast for technical equipment.

It also said in a statement that China will represent a 10-per cent growth in household spending for electronic equipment by next year while the US will have a 20-per cent share.

It added that Japan, despite being the world's most advanced technological market, is set to account for only 5.6 per cent of the total global turnover.

CEA said that 60 per cent of total sales next year will be generated from worldwide purchases of mobile phones, LCD TVs and laptops. "Portable products for individual usage...show strong growth potential," it added.

It said that by 2008 around 1.6 billion of portable products such as multipurpose mobile phones, and MP3 and MP4 players will be purchased worldwide. It added that the top 10 brands will account for 50 per cent of the total market value in 2007.

CEA stressed that households in regions with high GDP (gross domestic product) growth tend to buy the latest in electronic equipment more often, particularly old TVs being replaced by flat panel versions, desktop computers by more powerful notebooks.

It said that in South Korea, for instance, consumers buy new cell phones every 18 months or even as often as every eight months.

It added that a mobile phone is the most popular electronic product among consumers in Asian countries with higher populations and lower than average GDP.