UK PC sales far worse than forecast

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UK PC sales far worse than forecast

Paul Kunert

Flagging sales of commercial desktops and notebooks shoved the entire UK PC market into negative growth during the first quarter, according to data released by IDC today.

The UK had been forecast to decline 3%, but the severity of the economic slump has caused the market to drop 8.4% with a little over 2.8million units shipped and all but the consumer portable segment moving in the wrong direction.

"Businesses have cut budgets 20% to 30% across all departments and that is impacting IT spend," said Eszter Morvay, research manager at IDC. "We expect that to continue for another six to nine months before it improves."

Volumes in the commercial desktop and notebook segments fell 22.4% and 21.1% respectively, while in the consumer segment notebooks shipments rose 18.7% as sales of retail desk-based stock keeping units dropped 17.2%.

Netbooks accounted for about 30% of the 1.175million consumer mobiles sold in the UK and helped to maintain growth in the segment.

Out of the top 10 UK suppliers, only Acer, Toshiba and Samsung posted positive movements, with growth of 17.5%, 7.7% and 230.3% respectively.

Market leader HP saw sales decline 7.9%, while Dell - which once accounted for nearly one in every three PCs sold in the UK - saw volumes drop 22.2%, more than twice the market average.

Morvay said Dell was too reliant on the corporate enterprise desktop and notebook market and had been hit hard by the significant slowdown in the financial services sector.

Meanwhile, Fujitsu Technology Services' sales plummeted 50.4% as it suffered from the uncertainty surrounding its change of ownership and its unwillingness to pursue market share at the cost of profits, added IDC.

The other major suppliers that experienced a downturn in fortunes were Lenovo, which saw sales fall 18.5% after a torrid couple of months and Sony and Apple, premium brands whose unit shipments slipped 18.3% and 13.3% respectively.

This story originally appeared on Microscope.


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