APAC PC market down 5.1% in Q2

PC shipment in the Asia-Pacific region surpassed 21,5 million units, down 5.1 percent in Q2 compared to the same period last year, according to Gartner.

The dip was due to primarily due to market dynamics in India and China. In India, the pent up demand after the demonetisation cooled down after Q1, coupled with the absence of a large tender deal compared to a year ago and higher PC prices, brought about weak market growth. China was hugely impacted by the rise in PC prices due to the component shortage.

Overall, global PC shipment totaled 61.1 million units in Q2, a 4.3 percent decline from the same quarter last year.

The PC industry is in the midst of a five-year slump, and this is the 11th straight quarter of declining shipment. Shipment in the Q2 was the lowest quarter volume since 2007.

“Higher PC prices due to the impact of component shortages for DRAM, solid state drives (SSDs) and LCD panels had a pronounced negative impact on PC demand in the second quarter of 2017. The approach to higher component costs varied by vendor. Some decided to absorb the component price hike without raising the final price of their devices, while other vendors transferred the costs to the end-user price,” said Mikako Kitagawa, Principal Analyst of Gartner.

“However, in the business segment, vendors could not increase the price too quickly, especially in large enterprises where the price is typically locked in based on the contract, which often run through the quarter or even the year. In the consumer market, the price hike has a greater impact as buying habits are more sensitive to price increases. Many consumers are willing to postpone their purchases until the price pressure eases,” she added.

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