Australia PC Market Stabilizes; Performs Better than Expected in 4Q2016

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PC shipments in Australia totalled 1.12 million units (Desktop and Notebook) in the fourth quarter of 2016 (4Q2016), posting a year-on-year (YoY) decline of 3.2% according to International Data Corporation (IDC) Asia Pacific Quarterly PC Tracker. The market performed better than expectations, in comparison to the previous forecast of -10.2% 

Annually, shipments of traditional PCs slipped to 4.01 million units, down by 7.2% from 2015. The first half of 2016 was still constrained by Dick Smith’s exit, high inventory and free Windows 10 upgrades. However, the market bounced back in the second half of 2016, with significant hardware refreshment push, both within enterprise and public sector. 

The commercial segment posted a decline of 1.4% in 4Q2016. “Bring your own device (BYOD) seems to be fading away, particularly within the education segment, as several state education departments have returned to centralised purchasing policy” noted Sagar Raghavendra, Client Devices Analyst for IDC Australia. “The result is evident, as the education segment posted a growth of 36.4% YoY”. Public sector grew by 25.6% YoY followed by growth in corporate segment at 25.3% YoY. On the other hand, the SMB segment declined by 28.7% YoY. “Windows 10 free upgrade seems to have helped the SMBs to extend their hardware refresh cycles resulting in a downward curve for SMBs”, continued Sagar. The consumer segment declined by 5% YoY. “Microsoft and Intel’s continued incentivisation to OEMs seem to have helped alleviate the decline in the market, as this segment performed better than original forecast” added Sagar.

The Notebook PC market remained flat YoY, with the convertible form factor continuing to drive growth, posting a YoY growth of 41.8%. Desktop PC declined by 10.8% despite more demand for small/micro small form factor. “The market responded well to Intel’s Skylake processor launch in late 2015. The same was not visible with the Kabylake processor launch at the end of 2016, as the Desktop PC market attracted only a lukewarm response” added Sagar 

HP continues to hold the top position with a market share of 27.4%. Its growth was largely aided by superior performance in education and public sector. Apple remained at the second position with a share of 16.9%, majority of its growth coming from national retail. Lenovo maintained its third position, same from previous year, at 16.1%. Dell and Acer completed the top 5 ranks, ending at 14.5% and 12.2% respectively. Acer gained about 4.4% market share from previous year, with a consistent growth in consumer and education segment, including a large Chromebook deployment.

Australia PC shipments are forecast to decline by 5.5% 2017, followed by a relatively softer decline of 3.5% in 2018, according to an updated forecast from International Data Corporation (IDC) APAC Quarterly PC Tracker. 

About IDC 

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a subsidiary of IDG, the world's leading technology media, research, and events company.