Consumer IT Market Down in Germany, but Overall Up

The GfU in Germany has published its latest Hemix (home electronics) index, an extension of the previous Cemix index to now include electrical appliances and small appliances. I the first quarter of 2017, business was up 3.1% on the year ago number with positive development in most areas.

Developments in Consumer Electronics

The consumer electronics business developed positively in the first quarter of 2017 with a sales growth of 3.1% compared to the previous year’s quarter to just under 7.3 billion Euro. The Entertainment electronics segments
(+ 11.9%) and private telecommunications (+ 5.0%) increased in sales but there was a decline of 10.6% in consumer IT.

TV receivers generated sales of almost €1.1 billion (+ 10.0%) in the first quarter of 2017. The number of units sold rose by 9.2% to just under 1.9 million. Due to the conversion of DVB-T broadcasting in Germany to DVB-T2 HD, set-top boxes were able to record exceptional growth. Sales of €203 million (+ 273%) include close to two million sold set-top boxes (+ 202%). In the area of ​​digital cameras, higher-value products led to a turnover increase of 1.8% to €212 million, despite a smaller number of units (- 21.0%). In the Home Audio segment, sales were lower for the first time since 2013 (- 2.4%). The product segments audio / video accessories (sales + 16.5%) and Videogames consoles (sales + 36.7%, unit + 50.3%) developed very positively.

Smartphones (sales + 4.3%, number of units – 2.3%) and the core wearables (sales + 35.1%, unit + 24.6%) were responsible for the increase in the year-on-year comparison ,

The decline in sales was not halted for the consumer IT products. All three divisions of the PCs (total – 11.8%) and Recording Media (- 14.4%) were down.

Analyst Comment

The report can be downloaded here.

HEMIX Q1 2017