The Middle East, Turkey, and Africa (META) personal computing devices (PCD) market, which is made up of desktops, notebooks, workstations, and tablets, will slump to its lowest levels in a decade next year. This is according to the latest insights from International Data Corporation (IDC), a global technology research and consulting firm’s Quarterly PCD Tracker, which forecasts overall PCD shipments for the region of 19.6 million units in 2019, the lowest total since 16.5 million units were shipped in 2009.
“The region’s largest market, Turkey, has seen its currency weaken to the lowest levels in history against the U.S. dollar, causing the prices of imported goods from multinational brands to rise significantly,” says IDC’s senior research manager for client devices in the META region, Fouad Charakla.
He goes further, “This has had a significant negative impact on the purchasing power of end users in the country and will be a key inhibitor of growth over the coming quarters. Currency issues have also worsened in Iran due to the tightening of U.S. sanctions against the country, meaning it is now far more difficult for market players in Iran to make payments in U.S. dollars for supplies of imported PCs and tablets.” These ongoing currency issues in Turkey and Iran played a considerable role in the META region’s overall PCD shipments declining 14.3% year on year in Q3 2018. IDC’s latest research shows that shipments fell to around 5 million units for the three-month period, the lowest quarterly level seen since Q3 2010.
“Turkey and Iran were not the only sore points for the META PCD market in Q3 2018, with the UAE also suffering a significant decline in shipments,” says Charakla. He noted that this was caused by slow market sentiment in the country, particularly within the consumer segment. “It’s also worth noting that he duration of the region’s largest IT and consumer electronics sales event, GITEX Shopper, hosted in Dubai in early October, was shortened when compared to last year.”
The top vendor rankings in the PC market remained unchanged in Q3 2018 compared to the same quarter last year. HP continued to gain share, maintaining a comfortable lead over its rivals. All other top vendors also gained share, with the exception of Asus, which suffered a significant decline.
In the tablet space, Samsung continued to lead in terms of units, having delivered a massive education project in Egypt which enabled it to gain share. Huawei and i-life also managed to gain share while Apple remained flat and Lenovo suffered a major decline.
IDC expects that the shortage of supply of Intel CPUs in the market which kicked in from Q4 2018. This shortage is expected to last through the first half of 2019 and will primarily impact entry-level CPUs such as Atom and Celeron. On a more positive note, IDC expects another massive delivery of slate tablets into Egypt’s education sector during the final quarter of 2018. The first installment of around 100,000 tablets was delivered in Q3 2018.
For the Middle East, Africa, and Turkey region, IDC retains a coordinated network of offices in Riyadh, Nairobi, Lagos, Johannesburg, Cairo, and Istanbul, with a regional center in Dubai.