Despite Stability In Nigeria, Others, MEA PC Shipment Market Plummets

Nigeria, alongside Egypt, Kenya, South Africa, and Lebanon have held the Personal Computing Devices (PCD) in the Middle East and Africa (MEA) market from a steeper slide in Q2 2018. South Africa experienced strong year-on-year growth in PCD shipments after the rand reached one of its highest levels against the US dollar in recent times. Market players operating in the country continued to take advantage of this opportunity throughout Q2 2018, with imported PCs costing far less than previously for both local channels and end users. Nigeria, Egypt, Kenya, and Lebanon also saw strong year-on-year growth for the Quarter.

According to the latest insight from global technology research and consulting firm, International Data Corporation (IDC),  the region’s PCD market, which is made up of desktops, notebooks, workstations, and tablets, declined 7.7 percent year on year (YoY) in the second quarter (Q2) 2018.

IDC’s Quarterly PCD Tracker shows that shipments fell to around 5.4 million units for the three-month period, which represents the lowest quarterly volume recorded for more than seven years.

While the overall market had a considerable decline, the PC segment actually performed well, with desktops experiencing strong growth and notebooks experiencing only a small decline.

IDC’s senior research manager for client devices in the Middle East, Turkey, and Africa, Fouad Charakla explains further: “There was a much more significant decline in tablet shipments, and only the aggressive distribution push of certain Far-Eastern players prevented an even steeper decline.”

According to the report, the biggest decline in PCD shipments was seen in the ‘Rest of Middle East’ group of countries (which comprises Iran, Iraq, Syria, Yemen, Afghanistan, and Palestine). “Iran accounted for the largest chunk of this decline, with the country’s worsening economic situation further weakening the local currency, which in turn caused shipments into the country to become more expensive and demand to decline,” says Charakla.

He further explained that the MEA region’s largest single market, Turkey, experienced something similar, with the country’s currency weakening to new lows against the U.S. Dollar, causing a significant increase in the cost of imported devices and a corresponding decline in demand.

IDC’s research shows that the leading PC vendors remained unchanged in Q2 2018, with the top five all occupying the same positions as of Q2 2017. While HP experienced a significant year-on-year jump in its share of PC shipments for the quarter, all the other major players saw their shares shrink, with the exception of Acer, which remained flat. It is also worth noting that the top three vendors accounted for more than 80 percent of the region’s commercial PC shipments in Q2 2018.


Middle East & Africa PC Market Vendor Shares – Q2 2017 vs. Q2 2018

Company    Q2 2017  Q2 2018
HP Inc.   27.6% 31.7%
Lenovo   21.7% 18.8%
Dell   16.8% 15.5%
ASUS   9.4% 7.3%
Acer Group   4.1% 4.1%
Others   20.4% 22.6%


In the tablet segment, Samsung retained its lead in terms of shipments, with most of the major players increasing their shares year on year as the number of vendors active in this space continues to consolidate amid shrinking demand.


The Middle East & Africa Tablet Market Vendor Shares – Q2 2017 vs. Q2 2018

Company Q2 2017 Q2 2018
Samsung 19.1% 21.0%
Huawei 15.9% 18.9%
Lenovo 9.9% 9.7%
Apple 8.9% 9.1%
TCL Alcatel 5.1% 5.6%
Others 41.1% 35.7%


Looking ahead, IDC expects overall PCD shipments to the MEA region to total 22,369,321 units for 2018 as a whole. IDC forecasts that this figure will decline at a steady rate over the coming years to total 20,820,235 units in 2022.

“The biggest declines will be seen in the tablet space, as demand for these devices will continue to be cannibalized by the growing use of smartphones,” says Charakla. “In terms of country markets, Turkey will experience by far the largest decline in PCD shipments in 2019 as the Lira’s perilous exchange rate against the dollar is not expected to recover until 2019.

“With demand for tablets falling significantly, the UAE market will see a huge year-on-year decline in PCD shipments during Q3 2018, while cautious end-user sentiment will aggravate the situation in Saudi Arabia, with the Kingdom’s overall PCD market set for a notable decline. Over in Egypt, however, a large-scale education deal is expected to cause a significant rise in PCD shipments during the second half of 2018.”

Middle East & Africa PCD Market Shipment Forecast, 2017–2022

Product Category 2017  2018     2022  CAGR 2017–2022
PC 12,310,198 12,091,439 12,183,714   0.21%
Tablet 11,354,777 10,277,882 8,636,521   5.33%
Total 23,664,975 22,369,321 20,820,235   2.53%


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