Tumbling Oil Prices Suggest There May be Trouble Ahead

10 years ago

In spite of the growth in the PC market Q4, 2014, analysts predict a decline in 2015

The Middle East and Africa (MEA) PC market posted its third successive quarter of YoY growth in Q4 2014, continuing its recovery from the seven consecutive quarterly declines it experienced leading up to Q2 2014. The latest figures announced today by IDC show that the overall market grew 2.8% year on year for the quarter, spurred primarily by shipments of portable PCs and the return to a semblance of stability in certain key markets across the region.

“The market’s growth was also spurred by several mid- to large-scale education deliveries that took place across the region in Q4 2014, with the largest being in Pakistan,” says Fouad Rafiq Charakla, research manager for personal computing, systems, and infrastructure solutions at IDC Middle East, Turkey, and Africa. “One of the biggest surprises of the quarter came from Turkey, where PC vendors shipped significantly higher quantities than a year earlier in fear of anticipated changes to import duties from the start of 2015.However, the consequence of this was that channels exited the quarter with high levels of inventory, which will inevitably have a negative impact on shipment volumes in Q1 2015.”

The top three vendor rankings in terms of PC market share remained unchanged for the sixth consecutive quarter. HP retained top spot, while Lenovo came second and Dell took the third spot. Combined, the top three vendors accounted for more than 65.0% share of the commercial demand seen in Q4 2014.

Looking ahead, IDC expects the MEA PC market to suffer an overall decline of 3.9% year on year in 2015. Some country markets are expected to suffer in early 2015 due to currency fluctuations, including Egypt, Algeria, Tunisia, and Nigeria. “At the same time, the market’s performance will be hindered by uncertainty overthe outcome of general elections in both Nigeria and Turkey,” says Charakla. “And the recent rapid decline in global oil and gas prices will have an impacton almost all parts of the region, although the extent of this will vary from country to country. Nigeria and Ghana are expected to suffer the most, with PC shipments to these countries set to shrink around 40%year on year in 2015.”

“In the longer term, IDC forecasts the PC market to remain almost flat from 2015 through to 2019,” continues Charakla.“However, the gradual shift of PC demand from consumers to the commercial segment is expected to gather pace. This is because a growing portion of homeusers will switch from PCs to tablets and smartphones, while commercial endusers are expected to remain more loyal to the PC.”