UK PC market declined 15 percent in Q2

A perfect storm

The latest figures from market researcher Gartner confirm the protracted slump being experienced by the UK and Western European PC markets.

The UK market declined by 15 percent, but this was still better than the 18.9 percent plunge experienced by the whole of Western Europe. While the sovereign debt crisis is a factor in suppressing general demand, Acer's channel issues, and the destruction of the netbook market by tablets, all contributed.

"The PC market in Western Europe suffered from weak demand in both the professional and consumer sectors, a market which also faced inventory issues caused by overstocking in 2010," said Meike Escherich, principal analyst at Gartner. "This quarter's results highlight the ongoing weakness of consumer demand, and could indicate a structural change in the market that threatens to continue in the near future."

Acer is in the middle of a perfect storm right now, being heavily exposed to the consumer and netbook markets. So abject was its Q2 performance that it lost the number one spot in Europe to HP for the first time we can remember. Nobody did well, but Apple was the only one not to decline.

Western Europe: PC Vendor Unit Shipment Estimates for 2Q11 (Thousands of Units)

Note: Data includes desk-based PCs and mobile PCs. Media tablets are excluded.
Source: Gartner (August 2011)

The picture in the UK was pretty similar, but with Samsung supplanting ASUS and Acer dropping down to third behind Dell. "Acer's decline of nearly 50 percent in the second quarter pulled down the market further than expected," said Isabelle Durand of Gartner. "Acer had significant inventory that led to its weak performance, but it also prevented other vendors from pushing new shipments into the channel."

"PCs are not attracting consumers' disposable income, particularly in light of alternative devices. While remaining an important device to consumers, there are few compelling technological reasons to drive PC replacements."

United Kingdom PC Vendor Unit Shipment Estimates for 2Q11 (Thousands of Units)

Note: Data includes desk-based PCs and mobile PCs. Media Tablets are excluded.
Source: Gartner (August 2011)