subscribe

Middle East & Africa Personal Computing Devices Market Outperforms Expectations in Q4 2018 but Outlook for 2019 Remains Bleak

IDC

The Middle East and Africa (MEA) personal computing devices (PCD) market, which is made up of desktops, notebooks, workstations, and tablets, declined 5.0% year on year in Q4 2018, according to the latest insights from International Data Corporation (IDC).

The global technology research and consulting firm’s Quarterly PCD Tracker shows that shipments fell to around 5.6 million units for the three-month period.

“The biggest driver of demand in Q4 2018 was a massive delivery of over 600,000 tablets into Egypt’s education sector, which saw the overall MEA market outperform previous forecasts for the quarter,” says Fouad Charakla, IDC’s senior research manager for client devices in the Middle East, Turkey, and Africa. “This deal helped prevent what would otherwise have been a sharp decline in overall shipments to the region. The regional market was also buoyed by the strong performance of PCs in Saudi Arabia and a significant notebook deal that took place in the UAE.”

IDC’s research shows that the biggest declines in Q4 2018 were seen in Turkey and the ‘Rest of the Middle East’ group of countries, comprising Iran, Iraq, Syria, Yemen, Afghanistan, and Palestine). “The weak exchange rate of the Turkish lira against other currencies continues to inflate the cost of imported goods, making computing devices expensive for the country’s end users,” says Charakla. “Meanwhile, Iran, which accounts for the largest share of ‘Rest of the Middle East’ grouping, continues to suffer under the weight of U.S. sanctions. These sanctions have made it difficult for organizations in other countries to trade with Iranian businesses, negatively impacting the supply of personal computing devices into the country.”

The top three vendors in the regional PC market maintained their respective positions, with each of them gaining share on the corresponding quarter of 2017.

Middle East & Africa PC Market Vendor Shares – Q4 2017 vs. Q4 2018

Company

Q4 2017

Q4 2018

HP Inc.

28.9%

32.3%

Lenovo

19.5%

20.7%

Dell

14.9%

17.1%

Others

36.8%

29.9%

In the tablet segment, the massive education deal in Egypt saw Samsung more than double its market share in the region year on year and maintain its position in top spot. Apple climbed up to number two, while Huawei dropped to number three.

Middle East & Africa Tablet Market Vendor Shares – Q4 2017 vs. Q4 2018

Company

Q4 2017

Q4 2018

Samsung

17.9%

37.9%

Apple

11.2%

8.3%

Huawei

12.3%

7.7%

Others

58.7%

46.1%

Looking ahead, IDC expects overall PCD shipments into the MEA region to total 19.5 million units for 2019 as a whole. Currency-related issues in both Turkey and the ‘Rest of the Middle East’ grouping will continue to inhibit demand in those countries. On the flip side, a number of large-scale education projects are under discussion in several countries across the region; however, given the uncertainty surrounding these projects in terms of timeline, volume, and financial challenges, IDC has not reflected most of the larger initiatives in its forecast.

Looking further ahead, the overall PCD market is expected to remain close to flat over coming years, with PCs experiencing very slow growth and tablets experiencing a gradual decline. Given the growing use of smartphones and the corresponding shift away from PCs and tablets, it is unrealistic to expect either segment to return to the shipment volumes seen several years ago.

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC’s analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a subsidiary of IDG, the world’s leading technology media, research, and events company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC.

IDC in the Middle East, Turkey, and Africa

For the Middle East, Turkey, and Africa region, IDC retains a coordinated network of offices in Riyadh, Nairobi, Lagos, Johannesburg, Cairo, and Istanbul, with a regional center in Dubai. Our coverage couples local insight with an international perspective to provide a comprehensive understanding of markets in these dynamic regions. Our market intelligence services are unparalleled in depth, consistency, scope, and accuracy. IDC Middle East, Africa, and Turkey currently fields over 130 analysts, consultants, and conference associates across the region. To learn more about IDC MEA, please visit www.idc.com/mea. You can follow IDC MEA on Twitter at @IDCMEA.