Demand for consumer electronics products in the Philippines decreased in July compared to the same period last year, but this contraction was softened by the exceptional growth of LCD-TV and smartphones which grew by 130 percent and 73 percent, respectively.

Based on the latest report by research firm Gfk Philippines, LCD-TV’s growth was driven by the 32-inch screen size which grew significantly from the previous month. Its contribution to the total LCD-TV market grew from 59 percent last June to 65 percent in July. The average price of the 32-inch LCD-TV has gone down tremendously to P27,000 since the introduction of this technology a few years ago.

Smartphones, meanwhile, continued to perform impressively as it outstripped ordinary mobile phones by a huge margin in both sales value and units. Unlike mobile phones which are used only for calls and texting, smartphones employ a variety of features including Internet capability.

Demand for mobile phones, however, still grew by 36 percent in July, driven mainly by the low-end models.

Digital imaging products, on the other hand, experienced an increase of 4 percent. This growth, Gfk said, is attributable to the continuous easing of inflation rate and the steady inflow of OFW remittance.

Average price of digital camera and camcorder had generally decreased, Gfk said, as it noted efforts by retailers to liquidate old stocks through price reductions and cash discounts.

Other consumer products such as CRT-TV, audio home systems, DVD players and MP3/MP4 experienced minimal contraction while the camcorder suffered double-digit decrease compared to the same period last year.

The market for home appliances continued to be soft compared to the previous month due to less priority given by consumers to invest in “white lines” during this time of the year, Gfk said. White lines refer to refrigerators, washing machines, and air-conditioners.

“In order to sustain the demand for these products, both the manufacturers and retailers had to continue their promotional campaigns by coming up with new models that comply with environmental regulations as well as models that promote energy conservation. On top of these, pricing promos were also offered to entice consumers to buy these products,” the report said.