Wednesday, 26 February 2020 10:17

Coronavirus effect in EMEA PC market much less, says IDC

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Coronavirus effect in EMEA PC market much less, says IDC Image by Gino Crescoli from Pixabay

Shipments of so-called traditional PCs in the Europe, Middle East and African markets in 2020 will be 72.2 million, a decline of 1% year-on-year, the global market intelligence firm IDC says, adding that the first half of 2020 would be better than the second, with growth of 1.6% year-on-year for the first quarter and no change in the second quarter year-on-year.

Helena Ferreira, a research analyst with IDC Western Europe Personal Computing Devices, said: "Intel CPU shortages, as well as supply chain concerns stemming from the coronavirus outbreak, will impact the Western European PC market in 1H20.

"Notebooks will be particularly vulnerable to the supply constraints due to the high concentration of manufacturing that occurs in the affected areas of mainland China."

However strong inventory levels and prioritisation of Windows 10 transition deals would ensure that demand in the public and SMB spaces would be met during the first half of the year, IDC said.

No growth was expected in the consumer space until the final quarter of the year, with desktops being increasingly replaced by mobile devices. The demand for desktops would also be affected by the longer product lifecycles and drop in gaming demand.

emea pc 2020

Though notebooks, especially the thinner and lighter ones, had gained market share, the conditions in some places would limit growth to about 1% year-on-year in both the first and second quarters of 2020.

Dealers in both Central and Eastern Europe and the Middle East and Africa had not lowered their expectations by much for the first half of 2020, despite the continuing spread of the coronavirus, IDC said.

Supply shortages could lead to higher prices with the overall CEE forecast expected to stay steady in the first quarter, while the full-year figure would be down by 2.7% year-on-year.

"The commercial space is expected to remain relatively strong in the first half of 2020 thanks to a few large deals in the public sector, but the consumer space will remain inhibited by a lack of demand, longer PC life cycles, and a lack of inventories at the end of 2019 in key countries," said Nikolina Jurisic, program manager, CEMA.

"For MEA the overall PC market is expected to decline by 0.7% in 1Q20, with the year ending at -1.1% year-on-year, as not even the commercial segment will be able to absorb the weak consumer demand."

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Sam Varghese has been writing for iTWire since 2006, a year after the site came into existence. For nearly a decade thereafter, he wrote mostly about free and open source software, based on his own use of this genre of software. Since May 2016, he has been writing across many areas of technology. He has been a journalist for nearly 40 years in India (Indian Express and Deccan Herald), the UAE (Khaleej Times) and Australia (Daily Commercial News (now defunct) and The Age). His personal blog is titled Irregular Expression.

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