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Brazil ICT Newsletter-May/June 2007

IT Hardware: one of Brazil’s growth sectors
According to the Brazilian Electrical and Electronic Association (ABINEE), the industry’s 2006 total revenue reached US$48 billion, a 15% increase.

PC sales increase rapidly
The first forecast of market research companies this year states that personal computer sales in 2007 will again increase over the same period last year. This year, 64% of the units that will be bought represent the first computer in the house, increasing the base of the middle class.

Perspectives and Opportunities
Forecasts show revenues in the IT hardware sector increasing 20% in 2006.
Computer Software - Brazil Leads Latin American Software Revenues
Given the forecast for steady economic growth over the coming years, Brazilian IT spending should increase at a healthy pace.

Telecommunications Equipment & Services – Brazil, the Telecom Giant in Latin America
With roughly 35% of the region’s revenues, Brazil remains Latin America’s largest telecom market.

Trends – Wireless Mobility is Driving Growth
Once again mobile products and technologies were the market driving force, growing 32.8% in 2006. Brazil’s import market for telecom equipment and components reached.

Good opportunities in the broadcasting sector – Broadcast & Cable Trade Show
On April 15-19, Commercial Specialists Ebe Raso (SP) and Patrick Levy (RJ) escorted over 150 Brazilian entrepreneurs to the National Association of Broadcasters (NAB) show in Las Vegas. As the Brazilian market for broadcasting & cable equipment and services will continue to grow, U.S. manufacturers should take advantage of the Broadcast & Cable trade show to take place August 22 – 24, 2007 at the Imigrantes Exhibition Center in São Paulo, Brazil.

For more information on the ICT market in Brazil please visit the following links to:

The industry webpage: https://www2.focusbrazil.org.br/siteusa/index.htm

The market research database: http://www.export.gov/mrktresearch/exp_download_mr.asp

The Country Commercial Guide: http://www.focusbrazil.org.br/ccg/

The Commercial Service recognizes that exporting is a critical part of a company’s growth. We assist US firms in realizing their export potential by providing counseling, overseas market information, international contacts, and trade promotion vehicles. Our goal is to champion the interests of the US business, particularly small and medium-sized enterprises, around the world.
Contact the ICT Team Members in Brazil:

Telecommunications

– Ebe Raso (ICT Team Leader) – Ebe.Raso@mail.doc.gov
– Patrick Levy – Patrick.Levy@mail.doc.gov

Computer Software

– Genard Burity – Genard.Burity@mail.doc.gov

Computer Hardware

– Patricia Marega – Patricia.Marega@mail.doc.gov

ICT Newsletter Editors

– Patricia Orso – Patricia.Orso@mail.doc.gov

– Vania Resende – Vania.Resende@mail.doc.gov

According to the Brazilian Electrical and Electronic Association (ABINEE), the industry’s 2006 total revenue reached US$48 billion, a 15% increase... over the previous year’s US$37 billion. U.S. exports to Brazil of IT hardware increased 8% from US$2.4 billion in 2005 to US$2.7 billion in 2006. Brazilian IT hardware imports totaled US$18.7 billion in 2006, 24% more than 2005, an increase that can be attributed to a 42% increase in telecommunication component imports.

PC sales increase rapidly
The first forecast of market research companies this year states that personal computer sales in 2007 will again increase over the same period last year. This year, 64% of the units that will be bought represent the first computer of the household, increasing the consumer base of the middle class. It is expected that in two years the purchase of a second computer, probably a notebook or a more powerful machine, will be predominant. Brazil's corporate market holds also excellent potential for the corporate market computer expansion. The majority of corporations are aware that one of the most efficient ways to decrease costs and increase profits is through the automation of their industrial and commercial processes. The Brazilian market of small and medium-sized companies will be a key focus for most of the PC manufacturers, in 2007.

Perspectives and Opportunities
Forecasts show revenues in the IT hardware sector increasing 20% in 2006, from US$30 billion in 2005 to approximately US$36 billion. Brazilian imports in this sector are projected to grow about 44%.

Laser printer sales grew 42% in Brazil from 2004 through 2005, according to IDC Brazil. Although it has made no definite forecasts for 2007, IDC is betting on even greater expansion. From June 2005-June 2006, some printer manufacturers sold 200% more than in the previous 12-month period.

Sales of corporate network servers in Brazil should increase about 20% this year, reaching approximately 80,000 units. Falling prices of the machines, the renewal of the established base and the computerization of small and medium-sized companies are among the factors contributing to the expansion.

Please find more information in the PDF file provided below.