The International Data Corporation's (IDC's) latest research shows a substantial year-on-year decline in shipments of hardcopy peripherals (HCP) to Africa - in terms of value and volume - in the first quarter of the year.
The global technology consulting firm says the ongoing currency volatility experienced across the region saw the market shrink to 470 000 units to reach $190 million in value, a drop of 16.6% on the previous quarter and 12.7% year-on-year.
While most of the continent's HCP markets contracted in Q1 2015, the IDC points out Nigeria bucked the trend, recording year-on-year growth in volume and value on the back of successful vendor promotions in the colour inkjet space. Government tenders and demand from the small and medium business (SMB) sector also helped Nigeria's laser market to grow, a scenario that was replicated in SA.
"We have seen consistent demand from SMBs within the continent and we project this will continue over the coming few years, despite significant challenges remaining due to continuing currency fluctuations," says Roberto Alunni, research manager for imaging, printing, and document solutions at IDC Middle East, Africa, and Turkey.
"IDC believes that despite the year-on-year decline seen in Q1 2015, Africa will continue to offer strong growth potential across all the hardcopy technologies in the medium- to long-term. The growth will be led by businesses, as regardless of their size, reliance on physical documents continues."
IDC points out overall inkjet shipments to Africa fell by a quarter in the first quarter to total just over 210 000 units, with a corresponding decline in value of about $21 million.
While inkjet devices priced below $100 remained the most popular due to their affordability, devices aimed at the small office/home office segment were one of the few to show robust growth, mirroring the performance seen in the laser segment, says the company.
"Laser shipments declined in volume and value for Q1 2015, with a drop of 8.2% and 10.3%, respectively, to just under 250 000 units, worth $162 million.
"A decline in the entry-level A4 segment was the main reason for the overall decline in the laser market, as this segment is focused on retail channels and reflects the pressures that consumers have faced due to the currency fluctuations," IDC says.
However, demand remained stable for higher speeds and in the A3 segment, which reflects continued investment in IT infrastructure from businesses, the company adds.
"Serial dot matrix (SDM) shipments dropped considerably from a year ago, to just over 9 500 units, while there was a corresponding decline in value to approximately $6.50 million. Migration by the major users of SDM technology (such as banks and government institutions) to newer and more efficient technologies continues to be the principal driver of this decline."
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