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Corporate PC upgrades decline due to cash-strapped SMB sector

IDC's latest research into the state of the PC market has shown that enterprise users are spending but SMEs are still under severe budgetary contraints

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IDC's latest research into the state of the PC market has shown that enterprise users are spending but SMEs are still under severe budgetary contraints, in terms of renewing ageing PCs.

In its Q4 2010 report on the PC market in Europe, the Middle East and Africa, IDC said, "Corporate demand continued to recover, helping to sustain commercial desktop volumes, but the SMB segment remained affected by economic pressure and uncertainty, forcing companies to prolong life-cycles and delay renewals, impacting portables in particular."

Sales of business PCs dropped 3% in the UK.

Across western Europe, the product category most affected was netbooks, which declined by 29%, but sales of mainstream notebooks were also affected and recorded a flat 0.5%. Traditional desktop sales suffered a severe drop of 19%, while growth in all-in-ones also slowed to only 1.8%.

Eszter Morvay, research manager of IDC's EMEA personal computing group, said, "The robust popularity of media tablets led to further deceleration in mini-notebook volumes as well as mainstream notebook demand due to constrained disposable income. The lacklustre interest in notebook renewals continued to fuel inventory build-up, despite slower sell-in in preparation for Sandy Bridge."

The findings reflect Gartner's report on the PC market, which was released last week.

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