PC sales dip but revenues rise

The volume of PC sales continues to dip but a factor of reasons meant that the value of those units shipped increased

The desktop market has been fairly consistent over recent quarters with the consumer end of the business in the doldrums and all the positive signs coming from the enterprise market.

The volumes continue to decline but as a result of price rises caused by currency fluctuations and component shortages the revenues have increased.

Figures from Context covering PC sales across Western Europe in Q1 found that year-on-year the volume of sales was down by 2.4% but revenues were up by 8.3%.

Thanks to the issues around the value of the pound most hardware manufacturers have been forced to put their prices up to try and cover costs. But there does seem to be a genuine appetitie around higher end products, with powerful notebooks one of the gainers in the enterprise space.

“Revenue growth was driven by a significant rise in distributors’ average sell prices for the quarter”, said Marie-Christine Pygott, senior analyst at Context. “Across the entire Western European region, average selling prices were up by 11% to €553 compared to Q1 2016. Across just the eurozone countries, ASPs for the quarter rose 7.3% to €535."

One of the drivers of investment has been to acquire improved hardware as part of a migration to Windows 10 and that movement might have been given a shot in the arm as a result of the recent high-profile ransomware attack on the NHS.

Figures from Spiceworks last month indicated that worldwide 52% of businesses were running at least one instance of Windows XP and the OS is running on 14% of business computers.

The reasons most often cited by IT administrators still using the unsupported OS is budget and lack of time. That might well have changed given the WannaCry ransomware incident, which many believed exploited an XP vulnerability.

Context: Western Europe Q1 PC shipments

 

Year-on-year Volume Growth

Year-on-year Revenue Growth (in local currency respectively)

Country

Q1-17

Q1-17

Germany

2.6%

9.2%

United Kingdom

-9.8%

14.6%

Italy

-10.0%

-2.0%

France

0.3%

4.1%

Spain

-0.8%

6.2%

Poland

-20.5%

-12.6%

Netherlands

1.8%

8.4%

Switzerland

7.5%

20.9%

Sweden

-6.5%

5.0%

Portugal

-8.8%

1.4%

Austria

3.4%

8.9%

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