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PC Market Grinding to a Halt, Finds IDC

  • 25 May, 2006 13:55

<p>NORTH SYDNEY, May 25th, 2006 – IDC has recently released the preliminary results for the combined Australian Desktop and Notebook market for the first quarter 2006. The results show the Australia PC market decreasing by one percent sequentially and increasing by four percent from the same period in 2005.</p>
<p>The first quarter of 2006 is an ominous sign for things to come in the next 12 to 18 months. Not only did the market fall below IDC's already conservative forecast, but vendors and channel partners are feeling the pinch as prices continue to plummet. To add to the situation, the post Y2K refresh wave is completely and utterly finished, leaving a much smaller base of run rate commercial business outside large tenders.</p>
<p>The first quarter of the year performed very close to IDC's forecast although the consumer notebook market continued to surprise. While Harvey Norman continues to maintain its hold, the retail market is expanding rapidly on both the low and high ends. The franchise based system within Harvey Norman, keeps product lines separate while markets are converging. This is opening up opportunities for the likes of Retravision, Bing Lee, Myer, David Jones, and OfficeWorks.</p>
<p>Michael Sager, Research Manager, Hardware, stated that, “The rise in interest rates combined with rising global oil prices will indeed have an impact on consumer spending, particularly from the famed 'mortgage belt'. The recent tax scheme proposed by Peter Costello will dampen this impact to a degree, holding up consumer spending. This is a very important factor for the PC market as consumer spending will be the main segment that sustains any positive growth in the next year to two years."</p>
<p>While the forecast for the near future is one of slowing growth, there are product advancements squarely aimed at the burgeoning consumer market. Technologies such as Viiv (Intel digital media content), Vista (Microsoft operating system), and widescreen notebooks will all play a role in increasing the prevalence of PCs in the home. Coupled with the rise in broadband, and conversion of dial up customers this helps create a large pipe for consumer sales.</p>
<p>Michael Sager, Research Manager, Hardware, noted that, “HP (Hewlett Packard) came back with a solid showing in both the commercial and consumer markets. After losing market share during the last quarter of 2006 it has now pulled ahead of second place Dell. As mentioned Dell lost ground, remaining in a solid second position as the competition grows in the indirect market. Acer had a strong quarter yet again in government and education sectors, gaining ground in third position. Toshiba had phenomenal quarter as the notebook only vendor garnered eight percent of the overall market as it made gains across the board, in particular retail."</p>
<p>"Taking fifth place was Lenovo, who is slowly growing its product range. The market anxiously awaits its entry into the consumer market. In a quarter of fundamental change to Intel CPUs, Apple saw a slight drop in market share. Finally in seventh position was a resurgent Optima who remains one of the few bright spots of the local vendors," stated Mr. Sager.</p>
<p>Prelim Australia Top Seven Total PC Vendor Market Share Overall Share:</p>
<p>HP 18.6%
Dell 15.3%
Acer 12.3%
Toshiba 7.8%
Lenovo 6.0%
Apple 3.2%
Optima 2.3%
Others 34.5%
Total 100.0%</p>
<p>For press enquiries please contact:
Michael Sager
Research Manager, Hardware
Phone: 61 2 9925 2231
Email: msager@idc.com</p>
<p>Click here to view the press release online:
http://www.idc.com.au/press/release.asp?release_id=230</p>
<p>Click here to subscribe to IDC press releases and newsletters online:
http://www.idc.com.au/newsletters/register/</p>

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