Europe was the fly in the ointment for global PC shipments in the second quarter of this year, which generally showed strong growth due to price cuts, say Gartner and International Data Corporation (IDC).
Gartner says driven by price cuts, worldwide PC shipments totalled 54.9 million units in the second quarter of 2006, an 11% increase from the same period last year. IDC puts the shipments and growth at lower rates, with 47.477 million units shipped, and a growth rate of 9.7%.
Both research firms pointed to a lower-than-expected European performance. IDC says inventory from the first quarter and distractions from the World Cup significantly cut into European growth, with shipments increasing by roughly 7% year-on-year compared to twice that the prior quarter.
Gartner says in the Europe, Middle East and African (EMEA) region, PC shipments totalled 16.7 million units in the second quarter of 2006, a 7% increase from the same period last year.
"For the first time since the first quarter of 2003, the region experienced a single digit growth. The vendors seemed in denial of this cyclical downward trend and few had enough flexibility in their business models to adequately adjust to rapid market dynamics change," says Ranjit Atwal, principal analyst for Gartner`s computing platform group in EMEA.
Gartner also says the slower growth was exaggerated by the vendors and the channel trying to reduce high PC inventory positions, as well as working to ensure compliance with the European Union`s Restriction of Hazardous Substances recycling directive.
"The inventory build-up in the distribution channels had been apparent for a year, but neither the vendors nor the distributors took enough action to deal with the problem, leaving the vendors with difficulties shifting inventory in a weaker market," Gartner says.
Globally
On a global basis, PC shipments continued to do well and Gartner attributes this to central processing unit (CPU) inventory clearance activity by Intel, and generally more aggressive pricing by Intel and AMD contributing to lower prices in the quarter.
"The impact of the CPU price decline varied among regions. In the US and Asia/Pacific, the cuts boosted shipments, while in EMEA, where there remains higher than normal finished goods inventory, shipments were adversely impacted," Gartner says.
"On a worldwide basis, large vendors continued to gain share at the expense of mid-tier vendors and system builders," said Charles Smulders, VP of Gartner`s Client Computing Group.
"The price cuts during the quarter undoubtedly helped the large vendors, as they were able to put more pricing pressure on the smaller players."
Share
