The PC market is shrinking

PC makers and vendors have been trumpeting for quite some time now, how the PC market is shrinking and that sales are dropping hard. The PC life cycle is reaching its peak, and consumers are yet to start replacing their old computers with new ones.

New figures from the International Data Corporation (IDC) back that claim, as its report suggests Q4 of 2015 has seen an 18.2 per cent decline year-on-year, for the EMEA (Europe, Middle East and Africa) region. There has been a total of 20.8 million shipped units in this time.

All of this has led to a contraction of the market by 18 per cent for the year in which a total of 76.3 million PCs got shipped.

The contraction of the market was expected, market analysts claim, adding that the emptying of inventory took eleven months and was quite costly, with strong promotions and price reductions.

Even new technologies, such as new CPUs and the release of Windows 10, failed to reverse the trend. Yet again, analysts are hopeful 2016 will be a much better year.

"The market contraction was to be expected," said Chrystelle Labesque, associate director, IDC EMEA Personal Computing. "However, if you take Bing out of the comparison, the consumer market would end the year flat, which is an encouraging sign of stabilization."

Microsoft’s Bing has had a strong promotion in summer 2014 to January 2015, which has resulted in a shipment push.

“2015 was clearly a very difficult year for the PC market. Demand remained weak across all four quarters with double-digit contractions in CEE and MEA," said Stefania Lorenz, associate VP, IDC CEMA. "The CEE region contracted by 26.4 per cent year-on-year in 2015. The region was negatively affected by the devaluations of local currencies and high PC inventory levels left from 2014. The worst impact on purchasing power was felt in the Eastern part of the region: Russia, Ukraine, Kazakhstan as well as the Rest of CEE subregion. Other factors that prevented the market from rebounding in the commercial space included government budget freezes."