Corporate Rebound Offsets Consumer Slump in EMEA’s PC Market in Q1, IDC Says
LONDON, APRIL 25, 2001 – According to IDC preliminary data, PC shipments grew 4.4% in Europe, Middle East, and Africa (EMEA) and 5.8% in Western Europe in Q1 2001.
Despite continued single-digit growth in Western Europe, the market has undergone a major shift in the market segment mix in contrast with the same period for 2000. Business sales returned to stronger growth, fueling the commercial desktop and Intel server market, whereas consumer sales slowed dramatically. Notebook sales continued to show positive double-digit growth.
The French market displayed the strongest signs of a recovery among EMEA’s three largest markets, with nearly 12% growth year on year, clearly driven by the business market rebound. Germany continued to record single-digit growth of only 1.3%, with weak consumer shipments and only partial business recovery. The United Kingdom also suffered from a lack of retail activity and low consumer confidence, limiting overall growth to 6.4%. Only Spain showed strong double-digit growth in Western Europe. Eastern Europe recorded the strongest growth of the three regions with 13.6% year on year, compared with the Middle East and Africa region where the strong double-digit decline of PC sales in Turkey led to an overall decline of 14.9% in the region.
After the post Y2K pause last year, there has been evidence of a recovery in corporate hardware spending in the first quarter. As expected, renewal cycles picked up again, and Windows 2000 rollouts will continue to drive commercial desktop and Intel server purchases over the next three quarters. Small and medium enterprise sales remained sustained.
Consumer demand, however, continued to slow, with retail sales causing a sharp slowdown in the major European countries in the first quarter.
"If the consumer market has not yet reached saturation point in Europe, it is because the attraction for other devices such as mobile phones, digital television, or digital cameras has contributed to a marginal shift away from traditional PC purchases. The development of more attractive notebooks and other mobile devices, however, will help stimulate new consumer demand and create new market opportunities," said Karine Paoli, expertise center manager of IDC’s EMEA Personal Computing group.
Aggressive pricing on flat panel TFT displays and other components helped to drive continued growth in the notebook market, where a price war is developing. Demand from small and medium enterprise users and an increase in the number of corporate replacement machines, as well as continued consumer demand driven by increased multimedia capabilities on notebook machines, resulted in double-digit notebook growth.
"Continued investment in wireless services, including wireless LANs (with continued demand for access points and bridges in airports, office buildings, hotels, convention centers, etc.) and Bluetooth have assisted notebook growth in the region," said Andrew Brown, senior research analyst for IDC’s Personal and Mobile Computing group. "Aggressive pricing, increased reliability, and lower TCO were also key factors driving notebook growth."
Vendors’ Performance Highlights
· Compaq confirmed its leadership in EMEA and maintained the gap with its challengers. Thanks to strong commercial desktop sales, as well as strong double-digit growth in the Intel-server space, Compaq continued to dominate both markets. Compaq’s notebook sales also continued to record strong growth, helping the vendor close the gap with the leader Toshiba.
· Dell returned to solid double-digit growth, benefiting from the business demand rebound and took the number-two position in the region. Outstanding growth in the Intel server marketplace, driven by aggressive pricing, also helped Dell to take the number-two position in the server market overtaking IBM and HP. Dell also continued to consolidate its third position in the notebook segment.
· Hewlett-Packard took the number-three position in the region, thanks to outstanding performance across all product lines. Strong business sales helped the vendor take the number-one spot in France for the first time as well as increase its leadership in Spain. HP also continued to gain share in the notebook market as well as in the consumer market with strong sales of its Pavilion product line.
· Fujitsu-Siemens dropped two positions due to an 8.8% decline of its shipments in EMEA as the vendor was badly affected by the slow consumer market in Germany. The German leader, however, recorded healthy notebook and impressive server results, which helped the vendor regain the leadership position in the German server market.
· IBM continued to display healthy performance, with sustained commercial desktop, server, and notebook sales across the region. Despite a strong performance in the business market, the lack of consumer demand in France inhibited stronger desktop growth, driving the vendor back into fifth position.
Vendors outside the top five recorded mixed performances. Despite internal reorganization, and a temporary cessation of advertising and promotion following the re-branding of the company, Acer achieved steady growth with a targeted focus on notebooks and its core SMB markets. Toshiba maintained its leadership in the notebook market in EMEA but was affected by supply constraints that prevented higher growth. NEC CI’s results were directly affected by the evident decline of the consumer market and slower Packard Bell sales. NEC, however, recorded healthy growth in the notebook market and strong Intel-server sales. Apple recorded another negative quarter, but the return of the company to profitability and the reduction of its channel inventory should place the vendor in a healthier position for the coming quarters.
Top 5 Vendors, Europe, Middle East, and Africa (EMEA) PC Shipments,
First Quarter, 2001 (Preliminary) (Thousands of units)
Q1 2000 % Unit Share Units
Q1 2001 % Unit Share Unit Growth
Q1’00 v. Q1’01
Compaq (1) 1,259 14.6% 1,432 15.9% 13.8%
Dell 764 8.9% 927 10.3% 21.2%
Hewlett-Packard 623 7.2% 826 9.2% 32.4%
Fujitsu Siemens (2) 874 10.1% 797 8.9% -8.8%
IBM 554 6.4% 580 6.5% 4.7%
Others 4,541 52.7% 4,437 49.3% -2.3%
Total 8,618 100% 9,001 100% 4.4%
Shipments are branded shipments and exclude OEM sales for all vendors.
Data for all vendors are reported for calendar periods.
(1) Data for Compaq includes Compaq, Digital Equipment, and Tandem products.
(2) Data for Fujitsu-Siemens includes shipments for Fujitsu and Siemens.
Source: IDC EMEA, Preliminary Results, Q1 2001
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