CONTEXT: Tablet PCs Drive Lacklustre Western European IT Distribution Computer Business in 1H 2013

July 15, 2013 - PRLog -- London - Despite the decline in the traditional PC business that has been the mainstay of Western Europe's IT Distribution business for decades, the growth in slate tablet PC sales, up +137%* in the first half of 2013, highlights a number of key trends across consumer and enterprise technology markets. This is according to data released today by CONTEXT, the IT market research company.

The report shows that slate tablet sales were largely driven by low-end Android offerings with Android’s share of the slate tablet market more than doubling in H1/2013 (61.2%) compared to a year ago (25.1%). Meanwhile Apple’s iOS share of slate tablets sales through distribution fell from 71.2% in H1/2012 to 37.2% in the first half of this year.

“In the consumer segment, while the iPad remains a popular choice, we have seen tablet demand steadily driven by low-end Android offerings”, said Marie-Christine Pygott, Senior Analyst at CONTEXT. “The increasing availability of attractively-priced Android systems means consumers can easily buy a Tablet as an additional product to their home PC, which means they postpone the replacement of their traditional PC.” The shift in consumer demand to Tablets as well as low business IT investment has continuously impacted PC sales in 1H13.

As a result, sales of PCs across Desktops, Workstations, traditional clamshell notebooks and netbooks were down by -12.6% in the first six months of this year, compared to a year ago. Desktop sales declined by 8%, notebooks were down by -6.2% while netbook sales saw a massive drop in demand with sales at -75.6% compared to a year ago.

The six monthly roundup also highlights the little positive impact Windows 8 has had on consumer demand for PCs due to the limited availability and steep price points of touchscreen systems.

CONTEXT figures further show that across the commercial segment, IT investment remains low as many countries still face adverse economic conditions. “Businesses do not see a need for new product refreshes - many have only just upgraded to Win 7; are reluctant to use Windows 8 given the mixed press it received; and are unsure of the use of touch functionality in a business environment”, Pygott added. Windows 8 share of Windows business OS-based PCs stalled at an average of 20% in H12013 across distribution.

“PC vendors are increasingly trying to seize the changing mobile market by launching Tablets and Laptop/Tablet combinations (hybrids). While we expect sales of hybrids to grow over the next six months, volumes in this segment are not yet substantial enough to provide mainstream growth”, Pygott commented.

*growth in volume terms

Country breakdown – H1 2013 vs H1 2012

Slate 1H13 Y/Y unit growth by country

UK

389.1%

Germany

86.7%

Italy

88.4%

Spain

193.1%

France

153.4%

Switzerland

45.2%

Austria

298.5%

PC 1H13 Y/Y unit growth by country (desktops, traditional notebooks, netbooks, workstations)

Germany

-17.0%

UK

3.0%

Italy

-13.1%

France

-7.7%

Spain

-25.2%

Switzerland

-18.5%

Austria

-18.0%

About CONTEXT

Headquartered in London with over 140 staff in 12 countries, CONTEXT specializes in tracking technology sales and pricing across the globe. With real-time data captured from a wide range of channel sources including exclusive access to Global Technology Distribution Council members, the $3 billion of sales processed each week in Europe provides the most accurate channel market information available today across a range of business and consumer technology products. CONTEXT reports and services enable our customers to assess their business operations in the light of actual sell-out figures, and make business-critical decisions based on hard data. Follow us on Twitter: @contextworld.com or visit our website: www.contextworld.com.

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