DTK eyes untapped demand

Hardware manufacturer DTK, citing a study from Dubai-based Madar research, claims that despite strong historic growth rates in the Middle East, the potential exists for PC vendors to sell an extra six million units a year in the region to keep pace with global PC sales and raise levels of PC penetration.

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By  Stuart Wilson Published  January 22, 2006

Hardware manufacturer DTK, citing a study from Dubai-based Madar research, claims that despite strong historic growth rates in the Middle East, the potential exists for PC vendors to sell an extra six million units a year in the region to keep pace with global PC sales and raise levels of PC penetration. Increased internet penetration and greater spending on IT from the region’s SMB sector is expected to sustain double-digit growth rates in PC sales across the 18 countries included in Madar’s study. However, the potential exists for even faster growth according to DTK and Madar. “Though the current levels of PC penetration are poor, the growth forecast in regional PC sales is promising and holds huge potential for an IT manufacturing and solutions provider of our reach and capability,” said Nimer Al Attal, managing director at DTK Computer Middle East. The study covered the six GCC states plus a Levant group including Syria, Lebanon, Jordan, Palestine, Iraq and Egypt as well as the markets of Algeria, Morocco, Tunisia, Libya, Sudan and Yemen. According to Madar, the Middle East accounts for PC sales of 3.12 million in a global market of around 188.9 million units. The actual sales are far lower that the theoretical sales figure the region should achieve. Based on the global ratio of PC sales to population base, the Middle East region should be nearer nine million units per year. From a GDP perspective, Madar estimates that an extra 500,000 PCs would need to be sold in the region to bring the Middle East in line with the global average of 472 PC unit sales per US$100m of GDP. “The findings reveal the regional differences in PC penetration and PC usage. WE will however rise to this challenge and renew our efforts to fill in the gaps and increase computer availability by providing affordable and suitable products to help the Middle East achieve parity with global IT levels,” Al Attal continued. DTK, which sells through a network of sales and service partners and VARs across the MENA region, produces a variety of IT hardware products including desktops, notebooks and servers. “We at DTK Computer Middle East are encouraged by the trends and have developed our marketing strategies to offer value-added products and services to our clients in the region. By providing much needed support for the region’s growing IT sector, we hope to improve PC penetration and establish the company as a leading IT player in the Middle East,” Al Attal concluded. While Madar’s study provides interesting insight on the untapped potential for PC sales growth in the region, there are myriad factors influencing PC penetration in each country that devalue direct comparison with a global average. While the Middle East undoubtedly has the population to warrant increased PC sales, this potential can only become a reality when economic development creates a situation whereby PCs become more affordable to consumers and business buyers alike.

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