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PH PC market continues to defy global trends

The performance of the Philippine PC market in the first quarter of 2016 exceeded expectations, posting the highest shipment levels since 3Q 2014. According to IDC data, PC shipments reached 518,645 units, growing 7% year on year (YoY). Such robust growth reinforces the Philippine PC market’s position as among the few in the world to still see growth.

Healthy shipment levels in 1Q 2016 can be attributed to the consumer segment’s increased uptake of notebook PCs pegged at 56% YoY on the back of bullish consumer spending. Entry-level notebooks were the biggest volume drivers in the consumer market during the quarter.

In contrast, the election season impacted the commercial PC market, causing it to decline by 17% YoY in 1Q 2016. The quarter saw delayed PC deployments for government projects and requests for bids held off. During the same period, the enterprise sector adopted a wait-and-see attitude toward major investments and spending. But this standstill is expected to change in the coming quarters as opportunities for the commercial PC segment will begin to flow again once the new administration has settled in.

The transition from desktop PCs to notebooks became more pronounced in 1Q 2016 as more and more end users embrace a mobile lifestyle. “The continued push of PC vendors in the entry-level notebook space, the proliferation of WiFi zones in public establishments, and the growing on-the-go culture of the working class are compelling consumers to consider portable PCs more than stationary ones,” said Sean Paul Agapito, Associate Market Analyst, Client Devices, IDC Philippines.

While this trend has been observed in the consumer segment for several years now, the transition is gradually reaching the commercial sector. The commercial desktop market declined 27% YoY in 1Q 2016, while the commercial notebook market grew 24%.

(Photo source: IDC)