Pakistan’s PC/Server Market Slowed in 2007 to Register 9.6% Growth, Says Springboard Research
Thursday, April 10, 2008 15:04Portable market continued to lead PC market growth amidst decreased desktop and server sales
Islamabad/Singapore, April 3, 2008: Pakistan’s PC/Server market experienced a slowdown in 2007 with its annual growth rate declining to 9.6% from the 16.4% recorded during the previous year, according to the latest data released by Springboard Research, a leading innovator in the IT market industry. Per Springboard’s Asia Emerging Countries Tracker report, Pakistan registered 629,836 unit shipments of PCs and servers in 2007. For the last reported period, Q4 2007, the market grew 11% YTY with 148,613 PC and server unit shipments.
Springboard’s data also indicated that the market slowdown was on account of increased political unrest and instability in the country, along with the continuation of the government-imposed 15% GST on IT goods and imports.
“Although the GST imposed on IT goods hampered Pakistan’s overall PC/Server sales, demand from the large organizations in the telecom, banking and financial sectors, as well as the government and education sectors, helped drive growth during a difficult year,” said Rehan Ghazi, Market Analyst at Springboard Research. “The home segment in the past few quarters has also witnessed an increase in PC procurement, particularly for notebooks, on account of rising consumer awareness fueled by aggressive MNC marketing,” Mr. Ghazi added. Springboard further reported that among the application segments, the large enterprises held 27.4% of total PC shipments, followed by the government and home segments.
Among brand players, HP sustained its market leadership with a 8.7% share in Q4 2007, while Lenovo continued to witness a decline in its market share, registering a negative annual growth rate. Toshiba emerged as a strong contender in the portable segment in the fourth quarter with its 82.8% YTY growth rate. “The notebook segment continued to drive Pakistan’s PC/Server market growth throughout 2007,” Mr. Ghazi said. “Increased consumer demand and new marketing strategies from the MNCs will help the notebook segment to further lead market growth in 2008 and beyond.”
Deep-seated issues such as political instability, the widening fiscal deficit and rising inflation rate are likely to dampen Pakistan’s PC/Server market growth in the near future. On the other hand, growing infrastructure investments and the government’s positive outlook on ICT implementation in the country are likely to favorably impact the market.
Given current market conditions, Springboard Research predicts that the PC/Server market in Pakistan will experience a growth slowdown, especially in the first two quarters of 2008. However, if the new government withdraws the GST on IT products in its June 2008 budget, as expected, Springboard expects the market to record accelerated growth, noticeable especially in the second half of 2008. The outlook remains particularly positive for portables as Springboard expects the segment to register a CAGR of 24.6% until 2010. Nevertheless, Pakistan’s political climate continues to play a major role in the country’s overall market performance.
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