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New Zealand PC Market Bounces Back
December 18, 2018 | IDCEstimated reading time: 1 minute
New Zealand PC shipments grew 1.6% year-on-year (YoY) in the third quarter of 2018, with shipments reaching 168 thousand units, according to research company IDC. This market growth was a reversal of the previous three quarters, which all recorded a decline in PC shipments. IDC says the growth stemmed from commercial notebook shipments, driven by Windows 10 PC refreshes and vendors stocking up in expectation of a worldwide shortage of Intel processors.
Liam Landon, Associate Market Analyst at IDC New Zealand, says commercial shipments grew 13.2% YoY. “With Windows 7 end of life approaching in 2020, we are seeing more companies with legacy systems planning their upgrade to Windows 10, which is boosting shipments in the commercial segment.”
However, the PC market growth is short-lived, according to Landon.
“The consumer market saw a decline of -11.9% YoY, with drops in shipments across both notebooks and desktops, while ultra-slim notebooks grew by 28.5% and gaming notebooks by 63.7%. While the consumer market is seeing strong growth in niche areas, the overall market is facing a clear decline. Competition from smartphones and tablets is the primary cause, exacerbated by lower consumer purchasing power and a weakened New Zealand dollar," says Landon.
IDC says the total PC market is expected to have declined in the last quarter of 2018 and this trend will continue into 2019.
“A continued drop in consumer demand, as well as vendors facing supply constraints, especially shortages of Intel processors, combined with high numbers of commercial notebooks shipped in the previous quarter, will put a damper on end of year commercial shipments,” says Landon.
Commentary on graph: HP has 43.5% of the PC market meaning it remains the top traditional PC company in New Zealand with a strong hold on the commercial market. Lenovo has grown strongly since the start of the year increasing share from 9.8% to 11.6% due to a strong performance in the public sector. However, Lenovo is still slightly down compared to last year (12.5%). Acer Group holds 11.2% share with a strong focus on gaming devices, supported by robust education sales. This has resulted in declines in unit share but gains in value share. Apple remains in fourth position with 10.1% share, but the release of the new MacBook Air promises strong Christmas sales.
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