Middle East and Africa PC market in a slump; IDC
IDC reveals PC shipments decline for the third consecutive quarter in Q4 2015 in MEA regions
Consulting firm International Data Corporation (IDC) has revealed the Middle East and Africa (MEA) PC market suffered a 28.7% year-on-year shipment decline in the Q4 2015. This slump represents the steepest decline ever recorded in the region for a single quarter. IDC's Quarterly PC Tracker shows that desktop shipments declined 29.4% year on year in Q4 2015 to total 1.3m units, with notebook shipments falling 28.2% over the same period to total 1.9m units. "Similar to the previous quarter, Turkey, the 'Rest of the Middle East' grouping (Iran, Iraq, Syria, Yemen, Afghanistan, and Palestine), Saudi Arabia, and Pakistan experienced the sharpest declines within MEA," said Fouad Charakla, senior research manager for personal computing, systems, and infrastructure solutions at IDC Middle East, Africa, and Turkey.
"The reasons for these declines varied from country to country, but included high levels political and economic instability and uncertainty, low oil prices, increasing security concerns, and volatile currency fluctuations, especially with the U.S. dollar becoming more expensive."
The top three vendors, HP, Lenovo and Dell, remained unchanged in Q4 2015. HP maintained the top spot in terms of market share, despite experiencing a fall of 27.4% year on year, while second-placed Lenovo suffered a decline of 29.9% on shipments. Dell, on the other hand, escaped with a mild decline of 8.7% year on year as the vendor had experienced a relatively slow quarter during the same period last year.
"As market sentiment remains low, IDC expects to see a delay in the recovery of PC demand," added Charakla. "Overall, 2016 will experience a further decline on 2015, as growth is only expected to occur in the second half of the year. A slightly stronger recovery is expected during 2017, after which the region will continue to experience a period of slow growth over the longer term. As the growing popularity of smartphones and tablets will continue to inhibit demand for PCs, vendors and channels across the region are expected to plan and order cautiously so as to avoid being left with high inventory levels."
Similar to IDC's previous forecasts, there will continue to be a gradual shift in the weight of demand from consumers to the commercial segment as a growing proportion of home users switch from PCs to tablets and smartphones while commercial end users maintain a greater loyalty to PCs. As a result, commercial demand for PCs in the region is expected to surpass that stemming from home users by the year 2017.