By Christine Lagat NAIROBI (Xinhua) --
Market for personal computers (PC) across East Africa has
experienced slight volatility occasioned by political uncertainties,
inflationary pressures and shifting consumer tastes, said a report released by
International Data Corporation (IDC) on Wednesday.
the IDC report, the PC market in Kenya, Uganda, Tanzania and Ethiopia declined
by 8.6 percent in the fourth quarter of 2016 while shipments for the products
fell to 113,303 units in the same period.
Africa’s biggest PC market, Kenya, continues to be hampered by political
uncertainty in the buildup of August elections while introduction of monetary
policy changes has tightened access to credit,” said Andrew Kirui, an analyst
with IDC East Africa
He noted that
unregulated imports and incoherent tax regimes were hurting growth of the PC
market in a region whose expanding middle class bracket presents new
opportunities for retailers in electronic gadgets.
The region is
also under mounting pressure from influx of gray imports from the Gulf Region,
which often evade value added tax (VAT), hence making them a cheaper alternative
to locally manufactured ones, according to Kirui.
by IDC indicate that commercial shipment of PCs in East Africa fell by 9.1
percent in fourth quarter of 2016 due to reduced investment by small and medium
demand for PCs in the region fell by 7.5 percent in the same period due to
cut-throat competition from gray imports.
report shows that Dell overtook HP Inc in the last quarter of 2016 to become
leading supplier of PCs in the East African region.
HP Inc saw
its shares fall to 22.3 percent while Lenovo remained in third position with
19.6 a percent market share, said the report.
experienced a rapid growth of the tablets market despite slump in demand for
analysis revealed a 230.5-percent growth of tablets market in Kenya in the last
quarter of 2016, thanks to record purchases from the government to implement its
flagship digital literacy program in primary schools.
analyst also pointed to a positive outlook of PC market in Ethiopia thanks to
higher consumer purchasing power linked to double-digit economic growth.
IDC report painted a bright future for the PC market in East Africa if countries
tackle regulatory bottlenecks that hamper its growth.
ahead, we expect the East Africa PC market to see marginal growth in 2017, with
a year on year increase in shipments of 2.0 percent forecast for the year as a
whole,” said IDC.