LONDON, UK, July 19, 2002 - According to preliminary data released today by IDC, PC shipments declined by 2.2% in Europe, Middle East and Africa (EMEA) in the second quarter 2002, compared with the same quarter last year, as a result of continued weakness in the market. As anticipated, cautious attitudes continued to prevail in the business sector, while consumer spending slowed further compared with the first quarter.
Competition remained fierce as vendors adopted aggressive pricing strategies in order to stimulate demand and clear inventory. Significant price drops in June only partially helped compensate for a lack of activity in May, however.
Corporate demand remained very slow and continued to impact vendors' results as the number of large-scale projects was limited. However, vendors were able to sustain sales to the small and medium business markets, which partially helped limit volume erosion.
On the consumer side, demand displayed even weaker trends than in the first quarter. If May is traditionally a weak month, this year's lack of activity was exacerbated by lower consumer confidence and the World Cup, which contributed to diverting consumer's attention away from PC purchases. Demand for notebooks, however, remained healthy, with fierce competition from local players still taking place in the retail channel.
Western Europe displayed very similar patterns to those of the first quarter, with a decline of 6% year on year. The lack of corporate rebound continued to prevent a return to positive growth in the three largest European markets, with France suffering the most from the lack of business investment, as well as weak consumer demand, while the UK and the Nordic region benefited from higher market confidence. Eastern Europe continued to record healthy growth at 13%, while the Middle East and Africa region displayed another strong quarter with 17% growth year on year.
"The outlook for the coming quarters remains uncertain. Though the rebound in corporate investments is expected to help the market return to slightly healthier trends towards the end of the year, consumer demand will remain very volatile." said Karine Paoli, IDC's EMEA Personal Computing Expertise Center Manager. "From a competitive standpoint, the merger between HP and Compaq certainly adds pressure and will force further rationalization in the market," she added.
Vendor Performance Highlights
The merger between HP and Compaq certainly contributed to the reinforcement of an already very competitive environment. Dell, however, continued to outperform the market, and Acer moved to fifth position in EMEA thanks to strong notebook sales. Despite difficult market conditions, local players continue to play a key role in the SMB and low-end notebook parts of the market.
HP, thanks to the acquisition of Compaq, took first position in EMEA, with a 20.8% share, though losing 2.4 points compared with the combined results of both entities last year. During the quarter, HP's aggressive pricing aimed at accelerating the product transition in the channel helped boost volumes, but the vendor's results remained affected by slow business demand.
Dell continued to outperform the market, displaying 5.7% unit growth despite weak corporate investments and competition from indirect vendors. Dell maintained pressure on the corporate market, while continuing to expand into the SMB market.
Fujitsu-Siemens retained third position in the overall ranking and the number one spot in Germany. Difficult market conditions in the largest European market and competition from both international and local players continued to affect the vendor's overall performance, though notebook sales remained strong.
IBM's performance was inhibited by a constrained corporate environment, but the vendor continued to show strong success through its Top Seller channel program, as well as in the notebook business market where IBM continues to gain share.
Acer displayed another strong quarter, with over 18% growth year on year, thanks to a continued and successful focus on the SMB and notebook markets, with notebooks representing over 50% of the Taiwanese manufacturer's overall shipments in Europe.
Top 5 Vendors, Europe, Middle East and Africa (EMEA) PC Shipments,
Second Quarter, 2002 (Preliminary) (Thousands of units)
|-----------------+---------+-----------+-----------+----------->
| | | | | |
| | 2Q01 | 2Q02 | share | share |
| | | | 2Q'01 | 2Q02 |
| | | | | |
|-----------------+---------+-----------+-----------+----------->
>------------------------------------------|
| |
| Y/Y growth |
| |
>------------------------------------------|
|-----------------+---------+-----------+-----------+----------->
| | | | | |
| HP * | 1,956 | 1,714 | 23.2% | 20.8% |
| | | | | |
|-----------------+---------+-----------+-----------+----------->
>------------------------------------------|
| |
| -12.4% |
| |
>------------------------------------------|
|-----------------+---------+-----------+-----------+----------->
| | | | | |
| Dell | 820 | 867 | 9.7% | 10.5% |
| | | | | |
|-----------------+---------+-----------+-----------+----------->
>------------------------------------------|
| |
| 5.7% |
| |
>------------------------------------------|
|-----------------+---------+-----------+-----------+----------->
| | | | | |
| Fujitsu-Siemens | 636 | 579 | 7.5% | 7.0% |
| | | | | |
|-----------------+---------+-----------+-----------+----------->
>------------------------------------------|
| |
| -9.0% |
| |
>------------------------------------------|
|-----------------+---------+-----------+-----------+----------->
| | | | | |
| IBM | 595 | 501 | 7.1% | 6.1% |
| | | | | |
|-----------------+---------+-----------+-----------+----------->
>------------------------------------------|
| |
| -15.8% |
| |
>------------------------------------------|
|-----------------+---------+-----------+-----------+----------->
| | | | | |
| Acer | 336 | 399 | 4.0% | 4.8% |
| | | | | |
|-----------------+---------+-----------+-----------+----------->
>------------------------------------------|
| |
| 18.7% |
| |
>------------------------------------------|
|-----------------+---------+-----------+-----------+----------->
| | | | | |
| | | | | |
| | | | | |
|-----------------+---------+-----------+-----------+----------->
>------------------------------------------|
| |
| |
| |
>------------------------------------------|
|-----------------+---------+-----------+-----------+----------->
| | | | | |
| Others | 4,091 | 4,193 | 48.5% | 50.8% |
| | | | | |
|-----------------+---------+-----------+-----------+----------->
>------------------------------------------|
| |
| 2.5% |
| |
>------------------------------------------|
|-----------------+---------+-----------+-----------+----------->
| | | | | |
| | | | | |
| | | | | |
|-----------------+---------+-----------+-----------+----------->
>------------------------------------------|
| |
| |
| |
>------------------------------------------|
|-----------------+---------+-----------+-----------+----------->
| | | | | |
| Total EMEA | 8,434 | 8,252 | 100.0% | 100.0% |
| | | | | |
|-----------------+---------+-----------+-----------+----------->
>------------------------------------------|
| |
| -2.2% |
| |
| |
>------------------------------------------|
Shipments are branded shipments and exclude OEM sales for all vendors.
Data for all vendors are reported for calendar periods.
(1) * Data for HP includes HP and Compaq combined
(2) Data for Fujitsu-Siemens includes shipments for Fujitsu and Siemens
Source: IDC EMEA, Preliminary Results 2Q02
About IDC
IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and ebusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC's customers comprise the world's leading IT suppliers, IT organizations, ebusiness companies and the financial community. Additional information can be found at www.idc.com IDC is a division of IDG, the world's leading IT media, research and exposition company. # # # All product and company names may be trademarks or registered trademarks of their respective holders.
For more information, contact:
Karine Paoli, Expertise Center Manager, EMEA Personal Computing Group
+44 (0)208 987 7218
kpaoli@idc.com
Andrew Brown, Research Manager Mobile Computing
+44 (0)208 987 7209
abrown@idc.com
Thomas Meyer, Expertise Center Manager, Enterprise Server & Solutions
+44 (0)208 987 7203
tmeyer@idc.com
Explore new economic landscapes, technology solutions, and strategies for IT investments at IDC's European IT Forum.
Date: September 16-17, 2002
Location: Grimaldi Forum, Monaco
For more information, visit http://www.idc.com/itforum02.