PC Market in CEE Stabilizes in 2016 with Recovery Expected Soon
Following three years of double-digit decline, the traditional PC market in Central and Eastern Europe (CEE) is showing signs of stabilization. A total of 12.6 million units of traditional PCs (desktop, notebook, and workstations) were shipped in 2016, representing a decline of 8.0% year on year, according to IDC’s Quarterly Personal Computing Device Tracker.
The notebook segment outperformed the desktop segment, thanks to strong shipments in Q4 2016; however, in a year-on-year comparison, the notebook segment contracted by 6.7%. The desktop market recorded a decline of 10.3% in 2016 compared to 2015, due to the weak demand in both the consumer and commercial segments.
Spending in Russia and CIS countries was constrained by macroeconomic challenges in the first half of 2016, while high stock levels in the channel and free Windows 10 upgrades had an inhibiting effect on shipments. The overall commercial PC market was also negatively impacted by budget constraints in public sector organizations across the region, along with limited or low-value corporate deliveries.
However, the second half of 2016, especially the fourth quarter of the year, saw an increase in consumer demand and a stabilization of the traditional PC market. The return to PC market growth in Russia and the CIS countries, for the first time since 2012, was driven by economic recovery, stabilization of the exchange rates, and improving oil prices.
Additionally, price increases of PC component such as SSDs, displays, and memory resulted in shipment shortages and delays at the end of 2016. Conversely, this had a positive impact on demand ahead of the inevitable PC price rise expected in 2017.
Traditional PC market consolidation continued in 2016, with the share of the top five vendors growing, together accounting for 74.6% of the total market volume (versus 73.3% in 2015). The ranking of the top five vendors remined unchanged year on year.
Lenovo remained the first-placed vendor with 23.2% market share, despite that share declining stronger than the total CEE PC market. The vendor maintained the lead in shipments to consumers and on the traditional notebook market. HP reinforced its second-place position in CEE with 18.4% market share. The vendor maintained the leading position in the commercial sector as well as the lead on the traditional desktop market.
Asus posted the strongest increase in shipments year on year among the first five vendors, continuing its focus on the consumer market. Acer performed better than the market average to maintain fourth place. A very low 2015 base and gains in the commercial space drove the vendor's performance. Dell's market share was boosted by a solid double-digit performance in the commercial notebook space, allowing the vendor to claim 8.9% of the total PC market. The vendor also posted strong gains in the commercial desktop segment.