IDC: Kiwi PC market beats expectations as Oz falters

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The New Zealand PC market outperformed expectations in Q3 2013, growing 21% year-on-year with 166,000 units shipped.

The same, however, could not be said for the Australian PC market which recorded a decline of 6% year-over-year with 956,000 units shipped in the same quarter.

Healthy channel inventory levels in the New Zealand market as a result of strong sell through rates allowed PC vendors to drive channel uptake of new Intel Haswell-based notebooks. HP recorded the strongest gains in its market share as the vendor drove new product refreshes through its channels.

“PC demand in New Zealand has also steadily gained momentum in the past few quarters, mirroring the recovery of the domestic economy,” says Amy Cheah, IDC’s Senior Analyst.

“Both consumer and business confidence lifted due to an increase in trading activity as economic growth started to expand to regions outside of Canterbury, further contributing to the recovery in PC demand.

“That said, the magnitude of growth last quarter was a pleasant surprise, especially in a mature market such as the PC market.

“In fact, this is the first time the New Zealand PC market grew year-over-year in 2 years.”

In contrast, the Australian PC market continued on a downward trajectory, exiting the quarter on a soft note as seasonally expected from Q3. PC spending remains subdued amid tough business conditions as political distractions from the general elections suppressed public sector IT spending, while currency depreciation increased prices and squeezed retail and vendor margins.

Despite overall retail sales being upbeat in Q3 as the initial cash-flow effects of the August interest rate cut flow through, the upside effect did not translate into PC spending in Australia. Consumers continue to withhold PC refreshes prior to the Christmas holiday season.

That said, consumer confidence in Australia has steadied in recent months while business confidence also improved following positive reactions to the Australian general election.

Considering a bullish New Zealand economy as well as the Christmas and education buying season, IDC believes the ANZ PC market is lining up to exit the last quarter of 2013 on a positive note against Q3.

NZ PC Market Share:

• HP 39%

• Apple 11%

• Dell 7%

• Acer 14%

• Toshiba 9%

• Others 20%

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