2Q2015 EMEA PC Market Declines – IDC | Independent Newspapers Limited
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2Q2015 EMEA PC Market Declines – IDC

Posted: Jul 21, 2015 at 12:15 am   /   by   /   comments (0)

By Emmanuel Okwuke – Lagos 


PC shipments in Europe, the Middle East, and Africa (EMEA) reached 17.2 million units in the second quarter of 2015, posting a 21.6 per cent decline year-on-year, according to International Data Corporation (IDC).

But, as expected, the market continued to suffer from unfavourable exchange rates which led to higher price points and weaker demand, with the decline deepened by the adverse year-on-year comparison with a very strong first half of 2014, when Windows XP related renewals boosted shipments across the region.

In addition, high inventories translated into lower shipments in this transition quarter, as the industry focuses on stock depletion in preparation for the Windows 10 launch later this summer.

“The second quarter was, as expected, a transition period between the very popular Microsoft Bing promotion, which supported sales over the past four quarters, and the forthcoming launch of Windows 10 at the end of July,” said Chrystelle Labesque, Associate Director, IDC EMEA Personal Computing.

All three EMEA regions suffered a strong contraction in PC shipments, with Western Europe posting a 19.3 per cent decline, while CEE and MEA both dropped year-on-year, at -24.3 per cent and -25.7 per cent respectively.

Currency fluctuations and inventories contributed to these weak results in all three geographies. Both consumer and commercial segments recorded strong double-digit declines.

Commercial shipments declined 18.9 per cent due to an unfavorable year-on-year comparison with 2014, when many businesses transitioned away from Windows XP and renewed their older devices.

Consumer shipments on the other hand contracted 24 per cent, following the accumulation of Bing inventories across multiple geographies.

The results in both segments were weaker than anticipated, as demand did not meet expectations and many vendors were forced to reduce new shipments to clear inventories and be ready for the launch of new products in time for the back-to-school season.

To benefit from the latest available operating system, some of the back-to-school business has been delayed to later this summer. While portable PCs declined 18.5% across EMEA, desktop PCs posted much weaker results, contracting 26.4 per cent.

This product category is still relevant in the commercial segment, although it is subject to enterprise renewal cycles, while the decline continues in the consumer market, as end users move to mobile devices such as notebooks, tablets, and smartphones.

PC shipments in Western Europe totaled 10.7 million units, with the consumer segment showing the strongest contraction, at -20.8 percent.

High stock levels affected the market, in particular for Windows Bing notebooks, as well as an unfavorable euro/dollar exchange rate, which led to an increase in prices and contributed to a slowdown in demand.

Commercial shipments contracted 17.9 per cent, with an adverse year-on-year comparison weighing on the result.

Southern European countries again performed better than the overall Western European market, with Spain and Portugal posting 4 per cent and 2per centgrowth respectively.

Italy contracted by 6 per cent, a much softer decline than the Western European average.

Ongoing Windows XP renewals in the commercial space and the continued economic rebound in these countries contributed to the more positive results.

On the other hand, central and northern European countries all posted declines, affected by high inventory levels, weakening demand, and adverse year-on-year comparisons.

Germany and the Netherlands were the most affected, with PC shipments contracting by as much as 34 per cent and 37 per centrespectively.

“The decline in the consumer market in Western Europe came in line with our expectations,” said Maciek Gornicki, Research Manager, IDC EMEA Personal Computing. “Strong Bing shipments in the past several quarters led to high inventory levels and we anticipated that the industry would focus on stock depletion this quarter in preparation for the launch of Windows 10 and introduction of new products for the back-to-school season.

“The commercial market results, however, came in lower than expected. It seems that the increase in price points due to adverse currency fluctuations has taken its toll on demand and forced businesses to postpone some renewals. Many companies are also waiting for the new products to be launched with the new CPU platform later this year.”