IDC: African PC shipments slump in Q4 2017

IDC: African PC shipments slump in Q4 2017

IDC: African PC shipments slump in Q4 2017

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The Middle East and Africa (MEA) PC market suffered a 6.2 % year – on- year slump in shipments in the fourth quarter of 2017according to the International Data Corporation (IDC), a technology research and consulting firm.

According to the latest insights from IDC, shipments fell to around 5.9 million units for the three-month period, which represents the lowest quarterly volume recorded for more than five years.

“While the overall decline was almost exactly in line with forecasts, there was a stark difference between the individual product categories, with PC shipments growing healthily and tablet shipments declining faster than expected,” Fouad Charakla, IDC’s senior research manager for client devices in the Middle East, Turkey, and Africa says.

A Zinox laptop computer made by Nigerian PC maker, Zinox Technologies
A Zinox laptop computer made by Nigerian PC maker, Zinox Technologies

“Kenya suffered huge declines in its tablet market after a massive education project that boosted shipments in Q4 2016 was not repeated in Q4 2017.”

With end users continuing to shift to large-screen smartphones, demand for slate tablets is declining across the region, although the delivery of a large education project in Ethiopia saw an increase in shipments to IDC’s ‘Rest of Africa’ grouping of countries.

“These devices are increasingly losing significance in the market, with a large portion of them now being purchased for use by children,” according to the IDC researcher.

Mobile market….Technology Times file photo shows a phone shop at Ikeja Computer Village in Lagos
Mobile market….Technology Times file photo shows a phone shop at Ikeja Computer Village in Lagos

“The low prices of these devices, together with their touchscreen interface and the availability of numerous free applications, make them particularly attractive for children’s infotainment.”

According to IDC The recent introduction of 5% VAT in both the UAE and Saudi Arabia had a considerable impact on the market, with some vendors pushing a much higher sell-in for both countries during Q4 2017.

Additionally, Charakla says various market players shipped more aggressively into the UAE during the quarter as the implementation of VAT inevitably complicates the country’s position as a re-export hub.

“As a result of these factors, both the UAE and Saudi PCD markets are expected to experience a slow start to 2018,” Charakla adds.

“Consumer spending is expected to be hit harder in Saudi Arabia, particularly due to the additional hike in prices of various goods and services since the start of 2018 caused by the doubling of petrol prices.

Saudi Arabia has also introduced a so-called ‘dependent tax’ that is applicable to all non-citizen residents, a development that has tightened disposable income even further and caused many expatriates to consider leaving the kingdom.”

Looking at the PC market in isolation, each of the top five vendors maintained their respective positions when compared to the corresponding quarter of 2016:

MIDDLE EAST & AFRICA PC MARKET VENDOR SHARES – Q4 2016 VS. Q4 2017

COMPANY Q4 2016

 

Q4 2017
HP Inc 26.3%

 

29.0%

 

Lenovo 20.4%

 

19.2%

 

Dell

 

14.0%

 

 

 

14.9%

 

ASUS

 

 

8.7%

 

8.8%

 

Acer Group

 

 

 

5.7%

 

4.5%

 

Others

 

 

24.9%

 

23.5%

 

The top five tablet market players also maintained their respective positions in Q4 2017, although their individual performances varied.

Samsung, Lenovo, and TCL all experienced year-on-year declines in their tablet shipments, while Apple recorded moderate growth. The big winner was Huawei, which saw its tablet shipments to the region grow significantly year on year in Q4 2017.

 

MIDDLE EAST & AFRICA TABLET MARKET VENDOR SHARES – Q4 2016 VS. Q4 2017

COMPANY Q4 2016

 

Q4 2017
Samsung

 

 

15.9%

 

17.9%

 

Lenovo

 

 

10.8%

 

12.8%

 

Huawei  5.1%

 

 

 

12.3%

 

Apple

 

 

8.7%

 

11.2%

 

 

 

TCL

 

4.5%

 

5.3%

 

 

Others

 

 

55.1%

 

40.5%

 

 

It is worth noting that, together, HP, Lenovo, and Dell accounted for around 75% of overall commercial personal computing device (PCD) shipments in the region during Q4 2017, with the rest of the market’s players primarily focused on serving consumers.

“Looking ahead, the MEA PCD market is expected to experience a significant year-on-year decline for the first quarter of 2018, and will continue shrinking over the coming years as well, albeit at a much slower pace,” says Charakla.

“Slate tablets will experience the sharpest fall in shipments, while traditional desktops and traditional notebooks will decline at more moderate rates. By contrast, IDC expects all-in-one desktops, convertible notebooks, ultra slim notebooks, and detachable tablets to all show healthy shipment growth over the coming years.”

“In the shorter term, large volumes of notebooks are expected to be delivered into the education sectors of both Pakistan and the UAE over the coming quarters,”  Charaklas say.

“It is also important to note that massive education projects, exceeding millions of units, are currently at the early discussion phase in countries such as Turkey and Pakistan and have not yet been incorporated into IDC’s forecast due to  the lack of certainty around their scale and timing”, he adds.

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Kolade Akinola Technology Journalist at Technology Times Mobile: + 234 (0) 807 401 6027

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