Dubai: Driven by booming sales for notebooks, Gulf computer shipments surged by more than 43 per cent in the first quarter, marking the highest year-on-year growth in a quarter ever recorded by research firm IDC.
Shipments in the first quarter totalled 1.40 million units, up from 974,011 during the same period in 2009.
"The record growth in the first three months of this year resulted from strong sales compared to weak conditions during the first three months of 2009," Fouad Rafiq Charakla, senior research analyst, PC and Systems Group, IDC Middle East and Africa (MEA), told Gulf News in an interview.
He said early 2009 represented one of the weakest periods as consumer and corporate demand plunged due to the economic downturn. With economic conditions improving, PC sales rebounded in early 2010.
Notebooks accounted for nearly 83.16 per cent of the total sales and 82.70 per cent of the total laptop sales while mini-notebooks or netbooks accounted for 17.30 per cent of the total laptop sales.
The desktop PC market in the first quarter achieved year-on-year growth of 16.84 per cent Omar Shihab, Research Manager, PCs and Systems, IDC MEA, told Gulf News that desktop sales were always driven by corporates and small- and medium-size businesses.
Notebooks have become an essential item for consumers. It is no longer a luxury item or an option, it is a must have item for productivity and entertainment and as a second PC. Netbooks are going to stay despite lower margins and tough competition.
Total revenues in the first quarter rose 22.58 per cent to $1 billion compared to $863.46 million. The UAE registered the highest growth of 59.25 per cent to $433.78 million compared to $272.39 million in the first quarter of last year.
Omar said the launch of new Intel Core chips coupled with Windows 7 lifted sales and the trend is expected to continue this year too with a lot of customers and corporates seen shifting to new Microsoft's operating system.
"The PC industry, in terms of volume, has experienced double digit growth against the same quarter last year. However, due to a drop in the average selling price, the revenue growth has remained in single digit," Dharmendra Lalai, General Manager, IT Marketing Division, Sony Gulf, told Gulf News.
Consumer caution
He said the second quarter seems to be slowing down as consumers become cautious. However, it is growth rates that are affected, not growth itself. Despite the slowdown, it is a fact that PCs today are an essential tool for productivity or infotainment, and consumers continue to buy PCs and notebooks as first time and/or replacement buyers. The first purchase is further complemented by a second or even third PC being purchased for mobile use, i.e. for information or communication purposes.
"The economic slowdown has affected almost every business at a global level. Even the relatively insulated MEA region has been affected, although to varying degrees depending on each country.
Nevertheless, it is also true that PCs have become indispensable, as has the advent of multiple PCs within each household. This results in a subsequent increase in the number of PCs being sold, but a key challenge for all is revenue growth. This is where value addition and differentiation plays a role in Sony's current and future product offerings," he said.
In desktops, Oman recorded the fastest yearly growth of 26.51 per cent, followed by Saudi Arabia with 22.62 per cent, Qatar with 18.08 per cent, UAE with 13.83 per cent, Bahrain with 13.51 per cent and Kuwait with less than one per cent.
In notebooks, UAE recorded the fastest yearly growth of 71.84 per cent, followed by Oman with 54.65 per cent, Saudi Arabia with 38.39 per cent, Qatar with 36.95 per cent, Bahrain with 34.64 per cent and Kuwait with 30.10 per cent.
"At Sony, we are witnessing a three-digit growth from this segment, even though this is not our focus area. As a whole, Sony enjoys great loyalty and patronage from existing and new users, resulting in over 25 per cent growth in the second quarter for the total business. For 2010, we are aiming for over 30 per cent in terms of volume growth," Dharmendra said.
Fouad said around 40 per cent of the notebooks are re-exported from UAE to Iran, East Africa, CIS (Commonwealth of Independent States), Pakistan and some Gulf and Middle Eastern countries.
Shihab said telco channels, retailers, malls and exhibitions like Gitex and Dubai Shopping Festival were offering promotions to make the notebook sales very attractive to customers. In UAE, major malls were offering promotions to make them attractive apart from top vendors.
