UK PC market boasts Europe's biggest growth

 

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By Stuart Turton

Posted on 1 Aug 2008 at 10:36

The UK PC market is thriving, despite fears of an economic downturn.

According to figures from analyst firm Gartner, total computer sales increased by 27.4% in the second quarter of 2008, driven by strong laptop sales that accounted for 64% of shipments, with volumes rising by 60%.

However, the strong performance of the laptop segment has had a negative impact on the desktop PC market which suffered an 8% decline from last year.

Dell and HP have profited most from the growth, taking 45% of the market and holding on to their first and second place market positions respectively. But, it's HP's performance Gartner singles out for praise, noting that "it excelled by increasing its growth by nearly 100% in the consumer market," something the analyst firm attributes to HP's strong sales push among its retail partners.

In contrast third-placed Acer's growth suffered "due to a combination of weakened demand for the Packard Bell products and challenges with product transition as sales from inventory slowed down".

While the outlook appears rosy at the moment, Gartner did sound a note of caution.

"While the PC market is not immune from the economic forces, sharp declines in average selling prices have certainly fostered the growth. Steeper-than-expected price cuts could hit PC-makers' profit margins and prolonged price pressure will force further consolidation amongst vendors," says Ranjit Atwal, principal analyst at Gartner.

"Strong performance can only be sustained if new users are being reached or existing users are buying additional PCs or replacing their old ones more rapidly."