EMEA PC Market Recorded Sustained Growth at 10.5% in 3Q10, With Continued Strength in Central Eastern Europe, Says IDC
After robust trends in 1H10, growth in Western Europe slowed to single-digits, with shipment levels recording a flat 0.5% growth year on year. The deceleration was directly impacted by weaker than expected mini notebook demand, which led to a 25% drop in shipment levels. Demand for netbooks had already started to slow down in prior quarters, but the arrival of new media tablets contributed to shifting interest further away and accelerated the trend. However, the market continued to benefit from sustained mainstream notebook renewals during the back-to-school season, albeit at a more moderate rate of 10.1%, constrained by high sell-in levels in the second quarter. And while sales out was stimulated by aggressive promotions through 1H10, lower promotional activity and higher price points this quarter led to a softer demand stimulation. On the business side, some renewal activity contributed to support positive growth, but the bulk of renewals are still expected for 2011, while uncertainty also prompted many SMBs to be cautious, with many opting to wait till the end of their fiscal year before engaging on renewals.
"Mainstream notebook renewals in the consumer space remained positive, with most countries in Western Europe recording double-digit growth in the back-to-school season, but high sell in levels in 2Q and less attractive price points, combined with the accelerated contraction of netbook shipments, led to softer consumer growth in 3Q," said Eszter Morvay, research manager, IDC EMEA PC Tracker. "Mini notebooks had started to slow down in 1H10, but increasing noise and announcements around Media Tablets have contributed to accelerating the trend, and also impacted notebook renewal intentions from a share of wallet standpoint. Some users already purchased an iPad, and many others adopted a wait and see position as more products develop towards Christmas".
Growth in the CEE region remained unabated and the market continued to post outstanding double-digit trends, exceeding expectations again this quarter, with over 43% growth year on year, driven by continued strength and recovery across both commercial and consumer markets. In the Middle East, growth came in line with forecasts at 12.4%.
"In 3Q10, the PC market in the Central and Eastern Europe, the Middle East, and Africa (CEMA) region recorded staggering results, reaching volume of 11.2 million PCs and an increase of 29.4% year-on-year - far above expectations. PC boost came from the Central and Eastern Europe (CEE) region, with volume increase of 43.2% driven by both desktop and notebooks. Purchase from the consumer space is the fastest growing sector, with no sign of slowing down, and there is clear evidence of recovery in the commercial space in both public and corporate segments. The four largest countries in the region (Russia, Poland, Ukraine, Czech Republic) all recorded strong results thanks to demand for notebooks, also pushed by low-end products. The Middle East and Africa (MEA) region reported a 12.4% increase year-on-year, which was very close to expectations. The three largest countries in the region (Turkey, UAE, and South Africa) all reported double-digit growth. Like the CEE region, MEA also witnessed a stronger rise in notebook sales thanks to demand from both businesses and consumers," said Stefania Lorenz, research director, IDC CEMA.
Acer recorded a soft quarter overall at only 3.4% across EMEA, but regained the first position the vendor had taken last year during the same quarter. Performance in the CEE region was the key engine of growth, with close to 60% growth, while the vendor recorded its first decline ever in Western Europe. The negative performance across mature markets was directly impacted by a sharp decline in netbook shipments as well as inventory levels placed in the channel, which constrained sales in levels in 3Q.
HP dropped to second place in the overall ranking following a slowdown in growth compared with prior quarters. However, the vendor continued to deploy an effective and focused approach across both commercial and consumer segments, with clear gains in the CEE region, where the vendor recorded a robust 45% growth. HP was constrained in Western Europe by more cautious sell in attitudes from the channel which constrained sales in levels in 3Q, in the consumer space in particular. Counter-performance in the MEA region also contributed to the vendor's softer results overall.
Dell continued to benefit directly from the gradual commercial market rebound, and posted a healthy 12.2% growth overall across EMEA, which enabled the vendor to reinforce its third position. Growth was robust in Western Europe, where the vendor drove solid gains in the commercial space across both desktop and portable form factors, while rolling out solid execution in both the CEE and MEA regions. However, the vendor remained constrained in the consumer space, directly impacted by more limited channel presence and product push.
Asus maintained a solid performance with the second highest growth among the top 5 players, driven by continued push in the CEE market while also faring well in Western Europe. Performance across Western Europe was sustained thanks to mainstream notebook sales, while netbooks did not decline as much as they did for other vendors.
Lenovo continued to drive solid performance in EMEA and this quarter posted an outstanding 60% growth, the highest among the top 10 players which allowed the vendor to take a solid fifth position in the overall ranking. The vendor's continued focus and execution in the commercial segment paid off, leveraging from increasing enterprise refreshes in Western Europe, while Lenovo continued to expand in the consumer segment, launching new models in the IdeaPad consumer PC family.
Beyond the Top 5 - Toshiba displayed softer results overall, which contributed to push the vendor to sixth position, but lined up a strong performance in the CEE and MEA regions, while Samsung and Apple continued to deliver strong performances and gain share in the consumer space in particular. Samsung continued to gain share in Western Europe, but the largest push this quarter was seen in the CEE region, while Apple benefited this quarter from additional momentum around the iPad and Apple branding, which contributes to support demand for Apple products.
IDC Central Europe GmbH
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