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Home Tech PC Sales In Africa & Middle East To Drop By 2%, Says IDC

PC Sales In Africa & Middle East To Drop By 2%, Says IDC

by Caroline Vutagwa
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photo source: pcwarehouses

photo source: pcwarehouses

 

A recent report released by International Data Corporation (IDC) has shown that PC sales in Africa and the Middle East (AME) will decline by 2 percent in 2014, with sales remaining flat to slightly negative for the next five years.

The report says that, even though there was a positive result in the third quarter of the year that showed that the market had expanded by 2.1 percent to reach 4.26 million units, the decline will still be inevitable. the earlier on reported growth was triggered by two significant education orders in Pakistan and the revival of the Egyptian market.

Growth on the third quarter was seen across both the desktop and portable PC segments, IDC said. Desktop shipments to AME increased by 3.6 percent year on year to 1.73 million units, while shipments of portable PCs were up by 1.1 percent to 2.53m units.

“The market overcame ongoing instability in certain parts of the region to maintain its state of growth in the third quarter of 2014,” said Fouad Rafiq Charakla, research manager for personal computing, systems and infrastructure solutions at IDC Middle East, Turkey and Africa.

PC makers also had to contend with a general slowdown in PC demand across the region due to the growing popularity of tablets and smartphones, said Charakla. “Indeed, an overall regional decline was only averted by the delivery of 150 000 notebooks into Pakistan’s education sector and the return of relative calm to Egypt, which saw these two countries become by far the fastest growing markets during the quarter.”

The three leading PC vendors in AME remained unchanged from the previous quarter. Hewlett-Packard continued to lead in market share, posting year-on-year unit growth of 14.4 percent for the quarter. Second-placed Lenovo continued to benefit from strong consumer demand and was again the fastest growing major PC vendor in the region, increasing its shipments by 58.2 percent year on year. Third-ranked Dell recorded 23 percent year-on-year growth, with one of the education deals in Pakistan serving as a major driver of sales.

Despite this, IDC expects the AME PC market to shrink by 2 percent overall in 2014. “The market will remain close to flat over the coming five years, and may even experience some minor declines, with demand for both desktops and portable PCs continuing to slow in many parts of the region. However, a number of underpenetrated markets — including Egypt, Pakistan, Nigeria and some smaller African countries — will continue to experience growth, preventing the overall region from experiencing any significant declines.”

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