Robust worldwide PC sales during the second quarter of this year helped buoy the IT sector with across the board growth of around 15%, according to international research firms Gartner and International Data Corporation (IDC).
Gartner says the PC market in the Europe, Middle East and Africa (EMEA) region grew by 15.5% during the past three months compared with the same period in 2003.
Unit shipments totalled 12.9 million, primarily driven by strong replacement demand in both professional desk-based and notebook PCs.
Rival research group IDC says worldwide (which includes North America), the PC market grew by 15% compared with the same period last year. However, it says the EMEA region grew by about 20% during the same period.
Professional demand strong
Gartner analyst Ranjit Atwal says PC demand in the professional market remains strong, despite the fact that prices are beginning to stabilise. However, higher than expected channel inventory levels at the end of the quarter have exaggerated the overall growth.
"Additionally, the PC replacement cycle for notebook PCs is reaching its conclusion and overall mobile PC growth rates, while still high, are trending downwards," he says.
Atwal says the PC market had a slow start in April and May, and international vendors seem to have prospered at local competitors` expense.
"Demand in Europe, supported by the strong euro and aggressive promotions, was the biggest driver of the quarter," says Loren Loverde, director of IDC`s Worldwide Quarterly PC Tracker.
IDC also says that despite warnings from some sectors of the IT industry, the recovery seems to be holding steady for now. "Consumers remain excited by digital media, and commercial organisations are in the full flood of PC replacement. This trend should persist at least through the end of the year," IDC says.
Vendor shipments
According to Gartner, Acer recorded the highest shipment growth in the EMEA region, rising by 60% as the company capitalised on its relationships in both the distribution and retail channels.
Hewlett-Packard was the number one vendor in the region, but for the second quarter running saw the lowest growth among the top five vendors. A focus on internal rather than external activities as a result of a recent re-organisation may have contributed to this poor performance, Gartner says.
Dell, Fujitsu-Siemens and IBM all outgrew the market, says Gartner, and although Fujitsu-Siemens` growth followed a poor performance last year, it still posted notebook growth of over 60%.
Gartner expects growth in the second half of 2004 to be weaker than the first half as mobile PC growth continues its relative decline.
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