European PC market shrinks

IBM PCMore bad news for the PC market comes from a report which said that shipments in Europe, the Middle East and Africa (EMEA) fell 21.6 percent in the second quarter of this year.

IDC said the industry in EMEA is suffering from unfavourable exchange rates which means prices of PCs are higher and demand is weaker.

The dismal figures are somewhat skewed by the fact that PC sales were very strong in the first half of 2014, when XP replacements became necessary.

The industry is also waiting for the launch of Windows 10, which also led to manufacturers reducing stock in the channel.

Western Europe saw a steep decline of 19.3 percent during the quarter, while the rest of the region dropped by 24.3 percent and 25.7 percent respectively.

The declines applied to both commercial buyers of PCs and home buyers. The introduction of the Microsoft Bing promotion has also hit profits.

In the quarter, PC shipments in Western Europe totalled 10.7 million units. Southern European countries did better than other Western European countries.

HP was number one in EMEA with a market share of 22.8 percent, followed by Lenovo (19.6 percent) and Dell (11.7 percent).

IDC thinks that the introduction of Windows 10 won’t bring much relief to the market, because the upgrade is free for a year to home buyers who have Windows 7 and Windows 8.x – while enterprises are inclined to be cautious in their buying patterns for a brand new operating system.