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Local PC sales buck the trend

Nicola Mawson
By Nicola Mawson, Contributing journalist
Johannesburg, 14 Feb 2011

SA's computing market is expected to see double-digit growth this year, after a strong performance in the last quarter of 2010.

Gartner says worldwide PC shipments amounted to 93.5 million units in the fourth quarter of 2010, a 3.1% increase from the fourth quarter of 2009. These figures were below Gartner's earlier forecast of 4.8% growth for the fourth quarter of 2010.

“Holiday PC sales were weak in many key regions, due to the intensifying competition in consumer spending,” says Mikako Kitagawa, principal analyst at Gartner. Devices such as media tablets and other consumer electronic items competed for consumer spend, adds Kitagawa.

The numbers indicate the PC market recovered from the recession, as it returned to double-digit growth, compared to low single-digit growth in 2009, says Kitagawa. “However, the PC market will face challenges going forward with more intensified competition among consumer spending.”

SA has bucked this trend, according to the IDC. Hannes Fourie, senior analyst for systems and infrastructure at IDC, says notebook sales grew 44% year-on-year in the last quarter of 2010, while desktop computer sales grew 3%.

Fourie expects total computing sales to reach double-digit growth during 2011. Total IT spending in SA is expected to reach $14.4 billion, as growth in the sector will more than outstrip total economic gains, says IDC.

“2011 will be a defining year for the consumer device market,” says Meike Escherich, principal analyst at Gartner. “Vendors and providers will have to rethink how they retain customers and attract new ones if they want to survive in this highly competitive environment.”

Related story:
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