Netbooks drive PC sales
PC shipments in Western Europe totalled 20.1 million units in the fourth quarter of 2008, an increase of 12.1% from the same period in 2007, according to technology analyst Gartner.
In 2008, PC shipments reached 66 million units in Western Europe, representing 17.2% growth from 2007. And at the heart of the growth was the new category of ultra-portable PCs known as netbooks.
"Surprisingly, in the fourth quarter of 2008 Western Europe was the strongest performing region in Europe, the Middle East and Africa (EMEA) as both Central Eastern Europe and the Middle East and Africa were impacted severely by the worsening economic conditions," said Ranjit Atwal, principal analyst at Gartner, based in the UK.
"Mini-notebooks continued to boost growth reaching nearly 2.5 million units in the fourth quarter of 2008, with the Telco channel gathering greater importance as a route to market for the PC vendors".
"While growth in PC sales in Western Europe was good, the underlying trend was down, with the professional market experiencing a 5% decline in the fourth quarter of 2008. If it wasn’t for mini-notebooks, the overall Western European market would be showing a decline. This does not bode well for 2009 as we expect the general economic conditions to worsen," said Atwal.
In the fourth quarter of 2008, price competition remained fierce with average selling prices falling 15% year-on-year. "Vendors have to manage risk in the PC business by balancing shipment levels with revenues and margins, while understanding there is still a significant PC market in 2009 with opportunities for the best prepared vendors," he said.
UK market growth
PC shipments in the UK totalled 3.7 million units in the fourth quarter of 2008, an increase of 12.2% compared with the same period in 2007.
"In the UK, the consumer market grew strongly while the professional market dipped dramatically with professional deskbased shipments declining 15% in the fourth quarter of 2008," said Atwal.
"The fourth quarter of 2008 is the start of the adjustments the PC industry will have to go through as PC vendors manage business models in line with the new lower growth rates. As such, inventory levels are being adjusted and costs have to be managed much more closely."
Across most of Western Europe, the consumer market held up well, with most vendors offering mini-notebooks through the Telco channel. These subsidised notebooks are being adopted as both replacements and additional PCs. With the economic conditions expected to worsen, these bundled broadband deals will appeal even more to consumers.
In the fourth quarter of 2008, ASUS increased its share in the market with impressive growth across all of its product lines. Toshiba defied the market with positive growth in both the consumer and professional markets. Dell did very well in the consumer mobile market but saw its deskbased shipments decline 25% across all segments.
"2009 is expected to see growth weaken in the UK and the mini-notebooks market is likely to be the only shining light in a difficult year for the PC industry," added Atwal.
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