Cambodians spent more than $40 million on purchasing flat panel televisions from April 2014 to March 2015, on the back of improving economic prosperity among the middle class, according to Singapore-based research firm Gfk.

The data shows that 126,000 TVs were bought for $46.3 million during that period, marking a 40 per cent increase in the number of TVs sold and 23 per cent increase in the sales revenue from the year earlier.

Seraphina Wee, public relations and communications manager at GfK, said this was indicative of consumers wanting to upgrade to newer technology, like ultra high definition TVs, which recorded a 200 per cent increase in sales.

“Cambodia’s total sales volume of flat panel TV continue to increase and consumer demand for ultra-high definition models have spiked exponentially in the past year to help fuel the strong growth of this segment as well as the overall value growth of the TV market,” Wee said.

Hor Hab, head of sales for GGear, an authorised LG Electronics distributor, said rising incomes are just one part of the story.

A decrease in TV prices combined with an increase in the number of hotels, apartments and condominiums all looking to have the latest technology, was also a factor, he said.

“Electronics market in our country is growing quite fast, very fast. The TV industry will be positively growing year by year,” he said. However, he said TV price were still higher when compared neighbouring countries because of high taxes in the Kingdom.

“The import cost for TV is zero per cent in our neighbouring countries, while there is a 5 to 15 per cent import tax and 10 per cent special tax [in Cambodia],” Hab added.

Independent economic analyst Srey Chanthy said middle income groups in Cambodia largely consist of young adults living in urban areas, who are increasingly tech-savvy.

“I think not just TV sales are increasing – smartphone sales are too. This is driven possibly by the purchase on credit scheme, such as through AEON micro-finance,” he said.