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Australian PC Market Returns to Decline After Period of High Growth
March 25, 2019 | IDCEstimated reading time: 1 minute
In Q4 2018, Australia's PC market experienced a -2.5% year-on-year (YoY) decline in unit shipments, according to the latest IDC research. This is a sharp departure from the very strong 2018Q2 and 2018Q3 results of YoY growth of 8.9% and 9.6% respectively.
The Australian PC market for the 2018 calendar year saw commercial devices grow 9.2% while consumer devices shrank -3.0%. “Competition from mobile devices, the slow pace of innovation and improvement in mainstream PC devices, and a disappointing gaming graphics hardware refresh cycle are all contributing to the extended life span of the consumer PC device”, says Sean Ashari, Market Analyst at IDC Australia. “For much of the year the opposite trend was seen in commercial PC Device shipments that were encouraged by SMB Tax rebates, the looming Windows 7 End of Support deadline, and the growing adoption of the PC-as-a-service model. Organisations were hungry for devices, however in 2018Q4 a combination of the Intel CPU shortage and uncertainty in business conditions (resulting from the US-China Trade War, domestic spending decline) curtailed growth at the end of the year and broke a yearlong commercial growth trend.”
IDC predicts that Australia’s PC market in 2019 will decline at -3.0% YoY. “Australia is expected to experience the continued decline in consumer PC shipments as a result of falling house prices, shrinking household savings, and uncertainty around interest rates”, says Ashari. “In 2019, Government and exporting businesses are expected to increase spending on PC devices, while locally trading businesses face a slow decline in business confidence”.
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 wholly-owned subsidiary of International Data Group (IDG), the world's leading media, data and marketing services company that activates and engages the most influential technology buyers.
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