Saudi PC market dives in Q2: IDC
Labour law, smartphones cited as causes
The Saudi Arabia PC market witnessed a sharp decline of 23.5%, year on year, during the second quarter of 2013, with shipments totaling 429,410 units, according to research company IDC.
Portable PC shipments fell 32% to 294,457 units, which is the steepest year-on-year decline ever recorded. IDC said the main reasons for the plunge are twofold: first, a new labour law passed in the previous quarter, and second, a shift in demand toward tablets and smartphones.
"The portable PC market relies mainly on the consumer segment," says Abdulaziz Alanazi, a research analyst at IDC Saudi Arabia.
"And consumers in the kingdom are now prioritising the purchase of tablets and smartphones over portable PCs. This was compounded by the government's enforcement of the 'Nitaqat' policy, which has had the unintended consequence of causing widespread disruption to PC retail sales throughout the kingdom."
The desktop market, on the other hand, remained buoyant, expanding 5.5%, year on year, to total 134,953 units for the quarter. This growth was mainly due to demand from the commercial segment and the government. In particular, the Ministry of Education signed numerous tenders to supply its schools with new, updated desktops.
On the supply side, Dell was able to maintain its leading position from the previous quarter, ranking first in both the desktop and portable PC segments. This was due to the vendor delivering large quantities of desktops for the education sector and maintaining healthy shipments of portable PCs as well. HP ranked second for both desktops and portable PCs. Toshiba remained in third place despite suffering a sharp decline in shipments when compared to the previous quarter.