SA PC market booming

By   |  May 25, 2006

South Africans are proving to be PC-hungry, with the SA PC market growing 31.6% in the first quarter of 2006 according to local ICT market analyst BMI-TechKnowledge. Price wars and the demand for laptops are driving the insatiable market.

Year-on-year growth is at 34.8%, says BMI-T. “The ongoing price wars and ensuing price reductions, assisted by aggressive promotions in the retail channel have led to an increased consumer demand, while portable adoption in the SMB space also continued at an accelerated pace. In addition notebooks remained a major focus for all vendors across both consumer and business channels, and the attractive promotions and price points clearly helped to boost demand,” says Hannes Fourie, PC analyst, BMI-T.

The desktop segment recorded a robust 31.4% quarter-on-quarter growth while the notebook sector continued to show quarter on quarter growth of 40.5%.

“As a result of falling prices the revenue growth was not as high as unit growth and showed 18% quarter-on-quarter growth to end on R2 793 billion.” adds Fourie.

Infrastructure building and upgrading contributed to the higher growth seen in the government and education vertical sector with spending in not expected to soften soon.

Looking forward BMI-T expects the consumer market to remain robust during the remainder of 2006 as the price declines continue to stimulate new purchases and renewals.

“The PC market will be driven by the need for mobility and attractive price points, vendors with the right technology at the right price will win in this competitive market,” concludes Fourie.

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