Healthy Business Demand Boosts Growth in the Spanish PC Market, Says IDC

LONDON – FEBRUARY 12, 2003 – According to IDC final data, the Spanish PC market displayed another impressive performance in the fourth quarter of the year, with overall shipment growth of over 19% year-on-year. Whereas the Christmas shopping season turned out to be much quieter than expected for the retail channel, healthy business demand boosted overall PC sales growth. PC sales for the full year 2002 grew by 6.7%, with positive shipment results across all form factors.


Double-digit growth in desktop shipments in the fourth quarter was mainly boosted by healthy corporate and SMB demand. Some corporate accounts gave the green light to hardware renewal projects that had been in the pipeline all year. The SMB market continued to positively respond to active vendor initiatives. The public sector continued to outperform the PC market, as budgets allocated for the year 2002 had to be spent by the end of the quarter.

The consumer market continued to display positive performance in the fourth quarter, generating important shipment volumes to both international and local vendors driven by attractive product offerings. However, as consumer confidence slumped to an eight-year low in December, Christmas shopping retail sales appear to have fallen short of expectations for most PC players. As a result, there has been a significant increase in inventories in January.

The notebook market displayed similar trends to those observed in the third quarter of the year. With growth at over 24% year-on-year, healthy sales results highlight the growing demand for portables by a greater number of both home-users and businesses. This has ultimately been driven by the expansion of the low-entry level market as well as by attractive products and prices in the retail channel.

"The outlook for the business market is encouraging for 2003. With GDP growth revised upwards for this year, increasing business confidence and important renewal cycles expected to take place within the following quarters, the commercial PC market should display healthier sales performance in 2003," says Angela Salmeron, senior research analyst for IDC's European Personal Computing Group.

"However, the outlook on the consumer market, which has been driving growth over the last year, is rather uncertain. The beginning of the year has started with important retail clearances during the January sales. As concerns over inflation and employment continue to rise, vendors will have to continue battling with pricing initiatives and focusing on promoting their products better in order to stimulate demand," she added.

Vendor Performance Highlights

HP continues to lead the Spanish PC market with nearly a fifth of market share, and recorded an overall growth of 14.8% year-on-year. The vendor maintained leadership in both desktop and SIAS markets for the fourth quarter and full year 2002.

Dell retained the second position in the overall Spanish PC market. The vendor continued to thrive with its direct business model and aggressive pricing approach across all segments. Dell recorded double-digit growth in all form factors and important market share gains in the consumer space.

Local vendor Airis Computer registered another quarter of strong PC shipments, growing at nearly 60% year-on-year. The vendor regained leadership in the notebook market and is also gaining share in the desktop space.

Acer gained the second position in the notebook market and leadership in the commercial notebook market. Its effective channel management, commitment to indirect sales, and aggressive pricing contributed to generating important volumes in the corporate and public spaces as well as in the retail channel.

Fujitsu Siemens' disappointing consumer notebook shipments negatively impacted the vendor's overall PC sales results during the fourth quarter.

Nevertheless, the vendor registered double-digit sales growth for the full year 2002 and held leadership in the consumer desktop space.

IBM recorded strong sales results in both its NetVista and xSeries SIAS products, as the vendor benefited from some large deals and SMB demand generated through its Top Seller Programme.

NEC CI displayed another strong quarter, with overall shipments increasing by over 63% year-on-year. Overall sales growth was mostly driven by healthy demand for its desktop and notebook Packard Bell products.

Toshiba experienced weak demand for its high-end notebook products, negatively impacting overall results. Nevertheless, the vendor succeeded in consumer sales products, which increased by over 17%.

Sony introduced its Vaio notebook products in the fourth quarter of the year. The vendor should be able to benefit from a strong brand image and retail presence to grow throughout 2003.

Local vendors Jump, Datalogic, Investronica, and ADLI suffered from fierce competition from both A-vendors and white-box manufacturers. Healthy consumer demand in the "back-to-school" season did not prolong until Christmas and most vendors reported losses.

Fourth Quarter, 2002 ('000s) [Table Omitted]

Shipments are branded shipments and exclude OEM sales for all vendors.

Data for all vendors are reported for calendar periods.

Data for HP includes HP and Compaq combined.

Source: IDC EMEA, Final Results 4Q02

Top 10 Vendor PC Unit Shipments and Share in Spain, Full Year, 2002 ('000s) [Table Omitted]

Shipments are branded shipments and exclude OEM sales for all vendors.

Data for all vendors are reported for calendar periods.

Data for HP includes HP and Compaq combined.

Source: IDC EMEA, Final Results 4Q02

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