Consumer electronics sales to increase despite the crisis

Global consumer electronics sales will increase despite the poor 2012 economic outlook. As emphasised in Deloitte's most recent Technology, Media and Telecommunication (TMT) Predictions 2012, this will also be the year of smartphones worth up to US$ 100 reaching 500 million units sold and NFC (Near Field Communication) technology winning 200 million users by the year-end.

Technology is becoming an increasingly important factor in the everyday life of today's users although consumer budgets are limited. Deloitte predicts growth in the global purchase of consumer electronics despite poor economic outlook for 2012. Consumers perceive modern technology as very good value for money. "According to the feasibility study that takes into account the device price and the expected time of use, tablets represent a cost of US$ 0.70 per hour, while other devices are slightly cheaper. If we compare the rate of US$ 10 per hour for having a car, travelling, going to concerts or sporting events with other costs, then the reason for such a perception becomes obvious", comments Dejan Ljuština, Director at Deloitte Business Advisory Services.

As in previous years, tablets continue to penetrate both the global and the regional markets strongly. Deloitte's analysts forecast that almost 5 percent of the total number of tablets sold will be in the hands of private users already possessing a tablet. This represents the fastest growing demand segment on the market.

Deloitte predicts that, by the end of 2012, over 500 million smartphones at a retail price of up to US$ 100 will have been sold globally, accounting for 20 percent of the total phone sales. Smartphones will support basic functions and feature reduced data capabilities. The drop of component prices will enable the devices to advance fast, as they will feature advanced technologies over time.

The global trend of adopting NCF technologies will keep on throughout 2012 and is expected to reach 200 million users at the end of the year. This a technology enabling fast exchange of data at short distances using radio frequency, and the installation of an NFC chip will expand device functionality. "Many have seen NFC technology as a solution for making payments using a mobile phone. However, because of a phased development of mobile payment, the technology will be used increasingly in other areas of application. In the meantime, other industries such as computer game manufacturers, automotive and health industries have recognised an opportunity in the presence and spreading of the technology. They will become the key drivers of NFC technology within the next year", says Ljuština.

Deloitte envisages that managing large volumes of data will turn into a global challenge. With only a few projects involving large data volumes back in 2009, with a total revenue below US$ 100 million, more than 90 companies from the Fortune 500 are expected to launch initiatives for managing large quantities of data by the end of 2012.

Despite a high offer of digital video devices, the expectations are that video on demand (VOD) will see no robust upswing in 2012, as the trend to watch content when broadcast will continue. On the other hand, owners of portable devices, who will watch 5 billion hours of missed TV content while on travel or commuting using public means of transportation, will mitigate the trend.

Despite internet being omnipresent as a medium for exchanging data between users, the limitations and restrictions of mobile and fixed networks will compel most users to resort to short-range wireless connections. The application of the already most frequently used Infrared and Blootooth technologies for data transfer is expected to expand further. Deloitte analysts expect the year 2012 to record around one percent of data being transferred directly between two devices without using a network.

As operators are balancing between investing in network infrastructure and meeting data transfer requirements, the data transfer technology is expected to evolve into the third option alongside fixed and mobile broadband network. Limitations of mobile networks have forced mobile device end-users to avail themselves of WiFi access. Regardless of potential speed or collection limitations, the trend will definitely boost the demand for direct data transmission between users.

"According to Deloitte's predictions, the year 2012 will see the global advertising market grow at a rate of 5 percent, with the growth rate of online brand campaigns (50 percent) outperforming online advertising with immediate response as well as the one of traditional advertising. The shift towards online brand campaigns will become a new trend, as more and more companies are focusing on attaching lasting values to their brands using online marketing instead of immediate response advertising", emphasises Ljuština.

In 2012 advertisers will focus their attention to neuromarketing. The controversial technology has already gained momentum in the food industry impacting packaging design or even product flavour. The method has already been used in a research of brain sections in charge of social relationships among active participants in social networks which were found to be more developed. Neuromarketing will evolve into a key tool for advertisers, but also continue to be deployed in combination with other media tools.