EMEA PC market declines by 2.2% says IDC

Cautious attitudes among business and consumer users results in overall market decline. However, the Middle East and Africa both register strong market growth.

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By  Greg Wilson Published  July 20, 2002

Preliminary research from analyst house IDC indicates that the PC market for Europe, Middle East and Africa (EMEA) declined by 2.2% during the second quarter.

As widely predicted, cautious attitudes prevailed among business and consumer PC users. However, the Middle East and Africa registered the strongest growth across EMEA, racking up 17% for the quarter.

Competition among the big vendors remained fierce as all players adopted aggressive pricing strategies in an effort to stimulate growth and clear inventory. Significant price drops in June, however, only partially helped compensate for a very slow May.

“The outlook for the coming quarters remains uncertain. Though the rebound in corporate investments is expected to help the market return to slightly healthier trends towards the end of the year, consumer demand will remain very volatile,” says Karine Paoli, IDC’s EMEA Personal Computing Expertise Center Manager.

“From a competitive standpoint, the merger between HP and Compaq certainly adds pressure and will force further rationalization in the market,” she adds.

Corporate demand remained very slow with only a limited number of large-scale projects. However, vendors were able to sustain sales to the small and medium business markets, which partially helped prevent volume erosion.

On the consumer side, demand displayed even weaker trends than in the first quarter. The lack of activity in May -- traditionally a slow month -- was exacerbated by lower consumer confidence and the World Cup, which diverted attention away from PC purchases.

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