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Massive PC slump in Africa

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The Middle East and Africa (MEA) PC market experienced a 25.9% year-on-year decline in shipments in the first quarter 2016, according to Data Corporation (IDC).

Shipments to the region fell for the fourth consecutive quarter, to total 3.2 million units. Notebooks recorded a sharp 28.7% decline in shipments to total 1.9 million units, while desktop shipments registered a comparatively slower decline, falling by 21.4% year on year to total 1.3 million units.

“All the largest markets in the region declined in Q1 2016,” says Senior Research Manager Fouad Charakla, Personal Computing, Systems, and Infrastructure Solutions, IDC Middle East, Africa, and Turkey. “The reasons differ from country to country, but slowdowns in tourist spending, lower consumer confidence resulting from low oil prices, political and economic instability, currency devaluations, and military conflicts have all played a part in the regional contraction. The ongoing shift in end-user spending toward smartphones and, to a lesser extent, tablets in the consumer segment was also a key element in the market’s decline.”

Similar to previous quarters, the positions of the top three vendors remained unchanged in Q1 2016. Despite experiencing a year-on-year decline of 23.4% in shipments, HP remained the market leader, securing the highest market share ever attained by a PC vendor in the region over the past 10 years. Second-placed Lenovo registered a slightly deeper year-on-year decline of 25.2%, while third-placed Dell suffered the sharpest decline of all vendors, recording a 28.9% fall in shipments. Meanwhile, fourth-ranked Acer was the only vendor to experience growth in the region, with a 2.2% year-on-year increase in shipments. However, the gap in terms of the market share of the top four vendors remains significant. In fifth place, Asus suffered a year-on-year decline of 7.3% in shipments during the first quarter of the year.

“With the approach of the holy month of Ramadan combined with the usual summer slowdown in activity, the second quarter of 2016 is also expected to record a decline in shipments, albeit a much softer one,” continues Charakla. “In the longer term, the PC market is expected to recover to some extent in 2017, with modest growth anticipated in the following years. Shipments to Africa are expected to grow slightly faster than shipments to the Middle East. Some substantial desktop orders were secured by local brands in Egypt and Algeria during Q1 2016, and there were also a number of large education sector deliveries that took place in smaller African markets during the quarter, such as in Rwanda, Burkina Faso, and Ivory Coast.”

As highlighted in IDC’s previous forecasts, there will continue to be a gradual shift in the pattern of demand from consumers to commercial customers, as a growing proportion of home users switch from PCs to tablets and smartphones, while commercial end users retain a stronger loyalty to PCs. The only exception to this trend will be the education sector, where commercial users will transition from PCs to tablets at a much faster rate. Despite this anomaly, commercial demand for PCs in the region is expected to surpass that of home users by 2018.

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Notre Dame, Scoop Makhathini, GoT, top week in search

From fire disaster to social media disaster, the top Google searches this week covered a wide gamut of themes.

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Paris and the whole world looked on in shock as the 856-year-old medieval Catholic cathedral crumbled into ash. The tragic infernal destruction of this tourist attraction of historical and religious significance led South Africans to generate more than 200 000 search queries for “Notre Dame Cathedral” on Monday. Authorities are investigating the cause of the fire that razed the architectural icon.

In other top trending searches on Google this week, radio presenter Siyabonga Ngwekazi, AKA Scoop Makhathini, went viral when it appeared he had taken to Twitter to expose his girlfriend, Akhona Carpede, for cheating on him. Scoop has since come out to say that he was not responsible for the bitter rant and that his account was hacked. “Scoop Makhathini” generated more than 20 000 search queries on Wednesday.

Fans generated more than 20 000 search queries for “Sam Smith” on Tuesday ahead of the the British superstar’s Cape Town performance at the Grand West Casino. Smith ended up cutting his performance short that night due to vocal strain.

Local Game of Thrones superfans were beside themselves on Sunday, searching the internet high and low for the first episode of the American fantasy drama’s eighth season. “Game of Thrones, season 8, episode 1” generated more than 100 000 queries on Google Search on the weekend.

As the festivities kicked off in California with headliners such as Childish Gambino and Ariana Grande, South Africans generated more than 2 000 search queries for “Coachella” on Saturday.

South Africans generated more than 5 000 search queries for “Wendy Williams” on Friday  as it emerged that the American talk show host had filed for divorce from her husband Kevin Hunter after 21 years of marriage. Hunter has long been rumored to have been cheating on Williams, which reportedly finally led to the divorce.

Search trends information is gleaned from data collated by Google based on what South Africans have been searching for and asking Google. Google processes more than 40 000 search queries every second. This translates to more than a billion searches per day and 1.2 trillion searches per year worldwide. Live Google search trends data is available at https://www.google.co.za/trends/hottrends#pn=p40

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5G smartphones to hit 5M sales in 2019

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According to the latest research from Strategy Analytics, global smartphone shipments will reach a modest 5 million units in 2019. Early 5G smartphone models will be expensive and available in limited volumes. Samsung, LG and Huawei will be the early 5G smartphone leaders this year, followed by Apple next year.

Ken Hyers, Director at Strategy Analytics, said, “We forecast global 5G smartphone shipments will reach a modest 5 million units in 2019. Less than 1 percent of all smartphones shipped worldwide will be 5G-enabled this year. Global 5G smartphone shipments are tiny for now, due to expensive device pricing, component bottlenecks, and restricted availability of active 5G networks.”

Ville Petteri-Ukonaho, senior analyst at Strategy Analytics, added, “Samsung will be the early 5G smartphone leader in the first half of 2019, due to initial launches across South Korea and the United States. We predict LG, Huawei, Xiaomi, Motorola and others will follow later in the year, followed by Apple iPhone with its first 5G model during the second half of 2020. The iPhone looks set to be at least a year behind Samsung in the 5G smartphone race and Apple must be careful not to fall too far behind.”

Neil Mawston, executive director at Strategy Analytics, added, “The short-term outlook for 5G smartphones is weak, but the long-term opportunity remains huge. We forecast 1 billion 5G smartphones to ship worldwide per year by 2025. The introduction of 5G networks, by carriers like Verizon or China Mobile, opens up high-speed, ultra-low-latency services such as 8K video, streaming games, and augmented reality for business. The next big question for the mobile industry is how much extra consumers are really willing to pay, if anything, for those emerging 5G smartphones and services.”

Strategy Analytics provides a snapshot analyses for the outlook for 5G smartphone market in this Insight report: 5G Smartphones : From Zero to a Billion

Strategy Analytics provides a deep-dive into the air-interface technologies that will power phones through 2024 across 88 countries here: Global Handset Sales Forecast by 88 Countries and 19 Technologies : 2003 to 2024

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