The Philippines Consumer Electronics

A new middle class is emerging in the Philippines. An estimated 1.5 million households will reach an annual income of $25,000 by 2024. This group will purchase consumer electronics for the first time and is eager to own mobile devices, game consoles, televisions, desktop and laptop computers, and other electronic peripherals.
 
Consumer electronics market spending for 2021-2025 will reach $8.1 billion. The most popular subsectors include mobile phones, computer hardware, laptops, tablets, and audio-visual devices. The analog switches will also promote further purchases.  Mobile phone sales recorded $3.7 billion in 2020. The mobile device market is the largest sector, making up over 55% of all consumer electronics-related spending. About 44 million of the 100 million population own smartphones. Media reports note that Filipinos spend an average of 10 hours online a day, with 144 minutes on social media. Major contributors are long commute times, working from home, virtual schooling, and other computer-based work.  

An emerging market would include premium products such as smartwatches and fitness trackers, targeting young professionals living in cities who use their disposable income for such luxuries.  A side note to consider is that actual purchasing power for the nation is distorted by the $33 billion in annual Overseas Foreign Worker (OFW) remittances that enter the country. 
 
Mobile phone sales will increase despite a lack of coverage due to limited cell towers resulting in slow internet connectivity, especially in the outlying regional areas of the country.  The Department of Information and Communication Technology Department (DICT) is working on several ICT programs ranging from the “national broadband for fiber cable layout” project, a new common tower policy, and the commercial rollout of a third telecommunication company which started in March 2021. The government is also planning for a digital TV migration by 2023. There is hope that such reforms will improve infrastructure to enable greater utilization of consumer electronics.  

U.S. firms interested in entering this market need a local partner/distributor to promote their products and services to the private and public sectors.  The U.S. Commercial Service Philippines can assist with this process. For more information, please contact Mr. John Giray, Commercial Specialist at the U.S. Commercial Service Philippines at John.Giray@trade.gov.