Business boosts NZ PC market as consumers back off

Growth stemmed from commercial notebook shipments, driven by Windows 10 PC refreshes and vendors stocking up in expectation of a worldwide shortage of Intel processors

PC shipments in New Zealand grew 1.6 percent year on year for Q3 of 2018 with a 13.2 percent increase in purchases by businesses offsetting a 11.9 percent decline in the consumer market, according to IDC.

IDC said the growth stemmed from commercial notebook shipments, driven by Windows 10 PC refreshes and vendors stocking up in expectation of a worldwide shortage of Intel processors.

Liam Landon, associate market analyst at IDC New Zealand said that, as Windows 7 approached its 2020 end of life, companies with legacy systems were planning their upgrade to Windows 10, boosting shipments in the commercial segment.

Landon said there had been declines in shipments across both notebooks and desktops, while ultra-slim notebook shipments grew by 28.5 percent and gaming notebooks by 63.7 percent.

He attributed the decline to competition from smartphones and tablets, exacerbated by lower consumer purchasing power and a weakened New Zealand dollar.

IDC expects the total PC market to decline in Q4 of 2018 and for this trend to continue into 2019.

“A continued drop in consumer demand, as well as vendors facing supply constraints, especially shortages of Intel processors, combined with high numbers of commercial notebooks shipped in the previous quarter, will put a damper on end of year commercial shipments,” said Landon.

HP leads with 43.5 percent of the PC market, according to IDC. Lenovo has grown strongly since the start of the year increasing share from 9.8 percent to 11.6 percent due to a strong performance in the public sector, but is still slightly down compared to last year (12.5 percent).

"Acer Group holds 11.2 percent share with a strong focus on gaming devices, supported by robust education sales," IDC said. "This has resulted in declines in unit share but gains in value share. Apple remains in fourth position with 10.1 percent share, but the release of the new MacBook Air promises strong Christmas sales."

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