Laptops trounce PCs in SA

Laptops are beginning to overtake desktop PCs in SA as they become cheaper and more functional, and lower broadband costs begin to play in their favour, says ICT sector analyst Arthur Goldstuck.

Goldstuck's World Wide Worx research firm estimates the total installed base of desktop and laptop computers in SA is between 5.5 million and six million units. While a precise breakdown between the two categories is unavailable, he says, there is a definite trend of laptops overtaking desktops.

"Four years ago, a desktop computer had a lot more functionality than a laptop. However, now with 3G cards and wireless connectivity, laptops are beginning to make desktops look a bit clunky," he says.

Paul Boshoff, country manager for HP's Personal Systems Group, says increased Internet availability has boosted demand for laptops and also upped demand for converged devices that combine cellphone functionality with those of personal data appliances.

He adds that laptop sales appear to be hitting spikes of as high as 50% per month growth rates, while desktop sales are trundling along at annual growth rates of 3% to 5%.

Boshoff says the emerging market is another factor stimulating local personal IT market growth, with users who had never bought such devices before.

"Those people are increasingly coming into the market and buying. We are also seeing great demand from the small and medium business sector, and fair demand from government and the large corporate sectors," he says.

Boshoff was in Cape Town yesterday for the launch of HP's new line of mobility and consumer products that are aimed directly at these markets.

He says the government and large corporate sectors are demanding increased security for their machines, while the SME and consumer markets are looking at increased mobility functionality.

Goldstuck says these trends apply mainly to the large metropolitan areas where broadband, whether through fixed-line ADSL services or wireless, is increasingly more available. However, these services still have to penetrate township and rural areas to any great degree.

Boshoff says the rand dollar exchange rate has had a minimal influence on the market in recent years, as the vendors have become used to dealing in a fluctuating exchange rate environment.