IDC REPORTS STRONG Q1 1999 PC SHIPMENTS IN WESTERN EUROPE
but Shrinking PC Prices
LONDON, April 27 /PRNewswire/ -- Driven by a strong and very competitive consumer market in Western
Europe, the PC market in Europe, the Middle East, and Africa (EMEA) rose by 15.9% in Q1 1999 according
to preliminary data released today by International Data Corporation (IDC).
Strong demand for PCs, combined with very aggressive pricing on both consumer and business markets,
boosted the PC market in Western Europe during this quarter. Desktops, portables, and PC servers all
experienced sustained unit growth in Q1 1999. However, Eastern Europe continues to be affected by the
Russian economic crisis, and the Middle East and Africa region slowed down after strong growth in 1998.
"Strong price competition in the retail channel, as well as on the professional market, clearly boosted major
European PC markets. However, it also strongly affected margins and value growth," said Karine Paoli,
EMEA senior analyst. "Attractive desktop offers and brand competition will continue to sustain high levels of
demand for PCs, but as the average price of PC servers also declines due to a push on the low end, the
market value growth outlook remains questionable."
Market Highlights
The Western European PC market continues to drive the entire EMEA
region with PC sales rising by 20.3% in Q1 1999 compared with the same
period last year. All countries performed well, except in the Nordic
region where unit growth, as predicted, slowed after the employee home
purchase boom of 1998. Fueled by a very strong consumer market in the
three major countries (Germany, France, and the United Kingdom),
Western European PC shipments exceeded 6.5 million units this quarter.
However, the price competition taking place in the retail channel, such
as PC Internet packages lower than $350 in France, as well as retail
brand competition, shrunk revenue expectations. Business demand
remained strong with desktops, notebooks, and PC servers experiencing
high volume growth. However, as in the consumer market, increased
competition and declining prices contributed to the poor market growth
in value.
Eastern and Central Europe (ECE) continued to be affected by the decrease in the Russian market, thus bringing the overall growth in
the ECE region down to -14.3% in Q1 1999 compared with last year. Russian PC shipments were, however, stronger than in the two
previous quarters, and PC shipments to Poland, the second-largest country of the region, continued to grow.
The Middle East and Africa PC markets have been directly affected by the slowdown of South Africa, the region's largest market, and
PC shipments rose by only 9.7% in the region. Turkey and Israel also experienced a strong slowdown in PC shipments.
Q1 1999 Vendors' Performances
Compaq continued to perform well and maintained its leadership in
the EMEA marketplace, bringing its share up to 17.2% in EMEA and 18.5%
in Western Europe. Compaq's PC shipments increased by 26% over last
year and high sales levels were generated by its desktop, notebook, and
PC server ranges. Price competition on desktops and PC servers,
however, impacted the leader's average prices and performance in value
terms.
IBM maintained its second-place position in the market and performed particularly well in mobile and PC servers where it further
consolidated its market share. IBM increased its PC shipments by 31.6% over the EMEA region, and thus gained share in the overall
market. IBM also continued to experience impressive growth in ECE where other leading vendors are struggling.
Dell's continuous and striking performance in Western Europe enabled the leading direct sale company to reduce the gap and stay
right behind IBM in the number-two spot. Dell continues to gain market share in desktops where it is maintaining the number-two
position as well as in the notebook and server market where the direct marketer holds the number-four position.
HP's poor results this quarter (-6.7%) have to be considered in relation to a very strong Q1 1998, when HP experienced a 68% unit
growth in the region overall. This counter-performance on desktop and PC server shipments, however, made it drop to the fifth
position in EMEA and the sixth position in Western Europe. HP, however, continued to increase its market share in notebooks.
Fujitsu gained one place in the top five leading vendors and is now standing in fourth place slightly ahead of HP. Its 46% increase in
unit shipments is linked to the increase in shipments in the German market, which accounts for more than 50% of its PC shipments, as
well as an aggressive push on the consumer desktop market.
Top 5 Vendors, Europe, Middle East, and Africa PC Factory Shipments,
First Quarter 1999 (Preliminary)
Vendor Q1 1998 Share (%) Q1 1999 Share (%) Growth (%)
Compaq Group 1, 046,712 15.9 1,318,646 17.2 26.0
IBM 520,021 7.9 684,153 8.9 31.6
Dell 462,982 7.0 680,221 8.9 46.9
Fujitsu 314,682 4.8 459,429 6.0 46.0
Hewlett-Packard 481,644 7.3 449,372 5.9 -6.7
Others 3,775,501 57.2 4,057,959 53.0 7.5
Total 6,601,542 100 7,649, 780 100.0 15.9
Shipments are branded shipments and exclude OEM sales for all vendors.
Data for all vendors are reported for calendar periods.
Source: International Data Corporation, April 23, 1999
About IDC
International Data Corporation is the information technology
industry's most comprehensive resource on worldwide IT markets, trends,
products, vendors, and geographies. IDC provides data, analysis, and
advisory services to the world's leading IT suppliers as well as IS
professionals in finance, insurance, entertainment, advertising,
consumer goods, and publishing. IDC's research and opinions are based
on the results of more than 300,000 end-user surveys, in-depth
competitive analysis, broad technology coverage, and strategic
analysis. IDC is committed to providing global research with local
content through its 500 analysts in more than 40 countries worldwide.
Additional information on IDC can be found on its Web site at
idc.com.
IDC is a division of International Data Group, the world's leading IT media, research, and exposition company.
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