Sunday, March 8, 2026
27.8 C
Lagos

Nigeria’s PC Market to Decline on Weak Oil Price, Forex Crisis

The Middle East and Africa (MEA) PC market experienced a mild decline of 1.8% year-on-year (Y-o-Y) in Q4 2016 to total 3.2 million units, according to global technology research and consulting firm International Data Corporation (IDC).

“With crude oil prices not showing any signs of strong growth in the near future, PC demand in several parts of the region is expected to suffer,” says Charakla.

“This will include Nigeria, Algeria, Saudi Arabia, the UAE, and several other Gulf countries, as well as some countries within the Rest of Middle East sub-region. Exchange-rate fluctuations and currency weaknesses continue to be another key inhibitor in several countries across the region and are expected to hinder PC demand over the coming quarters. Two of the most affected countries in this respect are Nigeria and Egypt.”

The decline stemmed from the desktop segment, as weak commercial demand saw shipments fall -10.0% Y-o-Y to total 1.2 million units for the quarter. Notebook shipments were up 3.6% to total 2 million units, driven primarily by demand from the consumer segment.

“The narrowing price gap between desktops and notebooks was one of the key factors driving this trend,” says Fouad Charakla, senior research manager for client devices at IDC Middle East, Africa, and Turkey. “The gap narrowed because the overall notebook market average street price (ASP) experienced a considerable decline, while the desktop market ASP experienced marginal growth.

“The region’s single biggest market, Turkey, experienced significant growth year on year, as vendors continued to push volumes into the market, catering to demand from year-end festivities, and companies continued to liquidate their budgets, some of which went towards IT investments. At the same time, there was a spate of government-driven initiatives aimed at triggering a positive outlook for the country’s economy, and this also helped spur PC demand.

“Other key markets, namely South Africa, the UAE and the Rest of Middle East (comprising Iran, Iraq, Syria, Yemen, Palestine, and Afghanistan), all remained close to flat, while Saudi Arabia experienced a Y-o-Y decline. With the Kingdom’s heavy dependence on oil combining with low oil prices, government spending in the country continues to be constrained, which is causing a similar spillover effect on other sectors as well.”

The top vendor rankings remained unchanged, with all top five vendors maintaining their positions from the previous quarter. The top three vendors combined, namely HP Inc, Dell, and Lenovo, accounted for almost 73% of commercial demand for PCs in the region during Q4 2016, which validates their decision to focus largely on serving the commercial segment. Conversely, the other key market players in the region remain largely focused on addressing consumer demand.

As was the case in previous quarters, the overall market share of local assemblers in the MEA region continued to contract as a growing portion of end users opted for multinational brands, with some even shifting towards refurbished PCs.

 

Middle East & Africa PC Market – Vendor Shares, Q4 2015 vs. Q4 2016
Vendor Q4 2015 Q4 2016
HP Inc. 25.1% 26.3%
Lenovo 19.5% 20.5%
Dell 14.5% 14.0%
ASUS 7.2% 8.7%
Acer Group 4.8% 5.7%
Others 29.0% 24.8%

Source: IDC EMEA Quarterly PC Tracker, Q4 2016

 

HP continued to lead the MEA PC market in Q4 2016 in terms of share, after experienced a slight increase in overall shipments. Despite suffering a decline in commercial shipments, the vendor continued to comfortably dominate the commercial segment. Lenovo led the consumer space in terms of unit share, while Dell experienced a strengthening of its position in the commercial space and a loss of traction among home users.

Taiwanese vendors Asus and Acer placed fourth and fifth, respectively, with both experiencing strong Y-o-Y growth. The most significant increases for both vendors were seen in the ‘Rest of Middle East’ market. While it features much further down the vendor rankings ladder and is growing from a small base, i-life experienced the strongest shipment growth Y-o-Y.

With a sub-$200 price point on the majority of its products, the UAE-based vendor has been able to catapult itself to notable market share in the region.

Post-2017, the regional PC market is expected to achieve a marginal growth rate each year through the forecast period ending 2021, driven by growing IT implementations and a recovery from instability.

spot_img
spot_img
spot_img

Hot this week

IWD 2026: Ecobank Nigeria Unveils Enhanced ‘Ellevate’ Programme to Accelerate Growth for Women Entrepreneurs

Ecobank Nigeria, a subsidiary of the leading pan-African financial...

‘Winning with Strategic Communications’ Launch, Targets Real-World Impact

Godfrey Adejumoh, a seasoned top-performing Global Business Communications Strategist...

IWD 2026: Why Women’s Inclusion is Central to Nigeria’s Democratic Future

As the global community commemorates International Women’s Day 2026...

CBN: N4tn Capital Raised, Verified in Sector Recapitalisation as at Feb 19

The Governor, Central Bank of Nigeria (CBN), Mr. Olayemi...

Tinubu: Oyedele In, Uzoka-Anite Out as Minister of State for Finance

President Bola Ahmed Tinubu has nominated Mr Taiwo Oyedele...

Topics

Airtel Nigeria, Axa Mansard Cement Partnership on Health Insurance

Airtel Nigeria and AXA Mansard have announced a strategic...

NASENI Holds Retreat to Align Goals of its Development Institutes

In order to achieve greater cohesion amongst its Development...

AMCON Donation to IDPs Wins USAID-ECR Award

R-L: Senior Vice President, Creative Associates International USA, Mr....

Pension Funds Investment in Real Estate, Infrastructure Will Grow Assets – Ojumu

  The Head of Equities and Fixed Income sales, Absa...

FNITCC Atlanta: Fidelity Bank to Spotlight Fintech’s Role in U.S. – Africa Trade

  Tier-one lender Fidelity Bank Plc will host a high-profile...

GTBank Records 5% Profit Decline in H1 2020

The H1 2020 result of GTBank Plc shows that...

NSE Migrates UBA, Access Bank to Premium Board Today

The Nigerian Stock Exchange (NSE) is pleased to announce...

NCC, Stakeholders Tackle Rural Connectivity Challenges

The Nigerian Communications Commission (NCC) has collaborated with the...
spot_img

Related Articles

Popular Categories

spot_imgspot_img