Shipments up thanks to price erosion

PC shipments in New Zealand and Australia are increasing, but 'wavering consumer sentiment' is forcing vendors and resellers to offer discounts to move stock, according to a report from analysts IDC.

The report says 1.8 million units were shipped in the second quarter of 2011, representing a 7% year-on-year improvement.

However, IDC market analyst Amy Cheah says consumer demand was weak in light of continued economic uncertainty and natural disasters.

"The ongoing price erosion is accelerating the commoditisation of the PC market," Cheah says, "further intensifying the pressure vendors face to gain profitable, yet sustainable share as margins tighten.

"In New Zealand, although overall consumer sentiment plunged in the immediate aftermath of the February earthquake, retail sales were more robust than initially feared. This was supported in part by the government's move to reduce interest rates.

24% of PC shipments in the region were made by HP, 15% by Acer, 14% by Dell, 13% by Apple and 10% by Toshiba.

IDC expects continued economic challenges will dampen the market for the third quarter, predicting a drop to 1.7 million units.