PC surpasses one million units shipped

Sales of notebooks, servers and even desktop PCs in Canada did well in 2005, according to the latest figures by Evans Research Corp. of Toronto.

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 best quarter in 2005 was the fourth, which saw the total shipments for notebooks, servers and desktops hit 1,300,751. This 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 the 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.

Another selling feature was peripheral and component upgradeability, Warren said.

Desktop PCs’ surprise performance notwithstanding, notebooks dominated the hardware market. Warren said laptops experienced a tremendous increase in product demand and in shipments, as unit volume increased 54 per cent annually. Strong adoption rates of mobile computing, coupled with wireless networking and lower product prices, helped this product segment grow dramatically.

Finally, the Canadian system builders market showed well.

They increased shipments by 31 per cent sequentially, and finished the fourth quarter with 34 per cent of total unit volume. Some of the larger system builders were able to win key accounts from the tier one vendors, which helped increase their presence within the marketplace. As well, consumer shopping for Christmas and school helped boost Canadian shipments, Warren said.

Warren predicts that 2006 will be another amazing year for notebooks. “We had 44 per cent growth in notebook activity between 2005 and 2004,” she said. “That is 1.4 million units verses 900,000 units. In 2006, we’ll see an increase in notebook sales with Acer, Toshiba, Lenovo, HP and also the white books.”

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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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