Strong growth in EMEA drives PC market

17-07-2008

by Deirdre McArdle

Global PC shipments outgrew market expectations during the second quarter, with strong growth in the EMEA region offsetting the sluggish US and Asia markets.

Worldwide shipments increased by 15.3 percent from the same period in 2007, according to research firm IDC, which had predicted growth of 14.9 percent for the second quarter. Strong growth in the Europe, Middle East and Africa (EMEA) region was driven by "unabated" notebook demand across the region, according to IDC. A surge in popularity for ultra-low-cost offerings also added to a good performance in the EMEA region.

In the US meanwhile, shipment growth was slow at just 3.6 percent compared to the year-ago quarter. IDC put this down to consumers and businesses tightening their belts in the light of the current economic slowdown. The Asia Pacific and Japan markets also had a less than stellar performance as inflation costs in the Asia Pacific region in particular affected spending.

Hewlett-Packard maintained its lead in the global market, with solid growth of 16.8 percent. The company shipped 13.3 million PCs during the quarter, compared to 11.4 million in 2007. Meanwhile, second-placed Dell also had a good three months, shipping 11.6 million PCs worldwide, up an impressive 21.4 percent on the same quarter a year ago. HP holds 18.9 percent of the market while Dell has a 16.4 percent market share.

It was Acer though that really shone during the second quarter, with growth of 63.5 percent, to grab third place in the market with a 9.9 percent share. Data for Acer includes shipments for Gateway starting in the fourth quarter of 2007, and only Acer data for prior quarters.

In fourth place, Lenovo saw slower growth than its main competitors at just 14.6 percent; however, with 7.9 percent of the market it is still comfortably ahead of fifth-placed Toshiba, which has a 4.4 percent market share. Toshiba did have a good second quarter though, with shipment growth hitting 28.5 percent.

"Despite the economic headwinds, the PC market continued to show its resilience," said Loren Loverde, director of IDC's Worldwide Quarterly PC Tracker. "Product refreshes, vendor competition for channels, and aggressive pricing add to the ongoing trend toward portable computing in attracting buyers. The steady growth, despite the pressure on consumer finances, reflects the increasingly important role of PCs within personal technology, and steady improvements in price and design."

Loverde went on to warn that even though the PC market has been relatively strong in recent quarters, the sector is not immune to the ongoing economic downturn. "Pressures are mounting and PC market growth is expected to decline over the next year," she said.