PC surpasses one million units shipped

Overall PC shipments surpassed the million-unit mark, finishing the fourth quarter of 2005 with an estimated 1,300,751 unit shipments. During that time, unit demand for hardware increased by 12 per cent sequentially and 16 per cent annually.

Michelle Warren, IT analyst for Evans and the writer of the report, said Acer Canada influenced the entire market for price and performance in 2005.

“They capture the No. 1 position with quality products at aggressive prices,” she said. “Resellers and distribution were able to assault the market and their products were everywhere because of their partnerships with the channel.”

Other factors for the positive results centre on corporate governance issues relating to Sarbanes Oxley legislation in the U.S. Warren said in her report that the law contributed to PC refresh rates on the corporate market, and opportunities such as the digital home initiative helped boost consumer shipments.

The fourth quarter basically ensured double-digit growth for the main players such as Dell, HP, Lenovo, Acer, Toshiba and the independent system builders.

Market indicators have placed desktop PCs as a declining commodity over the years, but according to Evans that did not happen in the last quarter of the year. Desktop PCs were a popular option in that period, as consumers and small businesses opted for the lower prices, custom component configuration and strong inventory levels.

Acer Canada managed to snag top spot in the overall LCD market in Canada, displacing Dell and other traditional vendors, according to Evans Research.

Flat surprises
Warren said Acer’s first place finish was a surprise. She said Acer Canada’s 2005 momentum in LCD shipments and its overall market popularity helped the subsidiary claim top spot.

“Dell, Samsung and Viewsonic are all very popular, but for the end result to be for Acer is good news for the channel (since Acer is a 100 per cent channel vendor) and for Acer,” she said.

Factors for Acer’s surprising success include strong pricing and the company’s ability to bring products to market, Warren added. “Aggressive price points which enable resellers and distributors to make money” were important, she said. “Acer did not cut prices on products, but they managed to give benefits back to partners.” Acer’s supply chain and its inventory levels were also excellent during 2005. This was another factor why resellers championed the product over others, Warren said.

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Jim Love, Chief Content Officer, IT World Canada

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Paolo Del Nibletto
Paolo Del Nibletto
Former editor of Computer Dealer News, covering Canada's IT channel community.
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