After the Brexit referendum, things are not looking good either for the UK, the pound or the Consumer Electronics industry. There is a slowdown and CE giants like Samsung and LG have started voicing their concerns. Although immature predict, but the South Korean exports have been affected negatively due to reduced consumer spendings. Uncertainty has been the biggest threat for CE for both businesses and consumers alike, by immediate effects in the UK and Europe in the short term. Consumers are preparing for the worst by spending less on non-essential commodities like smartphones and tablets.

Unnamed sources from LG stated “ there are possibilities that more European consumers may tighten their belts in spending for consumer products” directly affecting the confidence in business.

Moody's Investors service and Samsung teamed up for analysis and stated that there could be more volatile situations when the negotiations start for new arrangements between the UK and the EU. The fall of Euro will also affect Samsung in the European market.

However, it can be noted that the direct consequence of the pound weakening has been a boon for the trading industry in the UK as exports have increased dramatically, but the imports of CE has taken a setback and the situation could be reviewed once the new leader is elected and the negotiations start for UK's separation from the EU

In long term, both LG and Sasmung would refrain to invest either in the UK or the EU until UK's position is cleared and new agreements are brought up. With other anti EU sentiments grwoing, it seems that the instability in the European markets will be continued for many years.

Its too early to determine the situation and make an analysis on the affect of Brexit on the CE business in Europe but the same level of concern is rising amongst other major OEM's.

Source: http://www.androidauthority.com/brexit-consumer-electronics-industry-uk-europe-700248/

Author: Prashanth Pillai, handelot.com