IT research firm IDC has reduced the French PC market outlook marginally (-0.7) for 2011, with the expected deceleration of sell-in levels in the second quarter of 2011, as continued sluggish consumer demand raised inventory level for distributors and retailers.
Positive trends for the market are expected in the second half of 2011 due to favourable year-over-year comparisons, although the growth will not be as strong as previously forecasted, IDC said.
A much steeper decline (-13.6%) than anticipated was observed in PC shipments in France in the first quarter of 2011, following reduced sell-in levels associated with weak consumer demand and inventory build-up in the distribution and retail channels.
Increasingly popular media tablets and smartphones were one of the key reasons for the lack of demand in the consumer business, as these new portable devices cannibalized households’ budgets and contributed to the delay of PC renewals.
The Intel Sandy Bridge delay also contributed to this decline, as consumers decided to withhold their spending, waiting for the latest technology to become available in the marketplace.
The decline in the French PC market was partially compensated for by growth coming from the commercial space, which increased for the second quarter in a row, confirming improving economic conditions for business.
The commercial PC market in France recorded a 9.2% increase in 1Q 11, in line with IDC’s expectations, with the enterprise segment being the key contributor to growth.
Small and medium businesses were still affected by adverse conditions, with smaller companies suffering the most.
HP strengthened its leadership position due to very good performance and impressive 48.6% growth in the commercial segment, despite posting a 7.1% decline overall; while Acer remained in second place but continued to lose market share, contracting 25.5%.
Asus overtook Dell to move into third place, and benefiting from weak performance of its main competitors. Although its shipments declined, the vendor performed better than the market overall. Dell declined 45.7% in the consumer space due to weak demand.
Samsung climbed to fifth position in the overall PC market and continued to gain share in consumer portable space, despite a decline due to softness in the consumer market.
