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Egyptian PC Market Declines as Smartphone Shipments Continue to Surge

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The Egyptian PC market suffered a 32.4% year on year decline in shipments during the second quarter of 2015, according to the latest figures released by International Data Corporation (IDC). The decline in the tablet market (which includes 2 in 1 devices) was less severe, with shipments down 6.1% over the same period. Both markets began to contract at the start of 2015, with PC and tablet shipments totaling 116,000 and 166,000 units respectively in Q2 2015.

"Much of the decline in the PC and tablet markets was driven by high inflation, political instability, and the onset of the Ramadan season," says Nakul Dogra, senior research analyst for personal computing, systems, and infrastructure solutions at IDC. "Currency depreciation against the U.S. dollar and central bank regulations governing dollar deposits also affected the inflow of shipments. The PC market will continue to slow throughout 2015, with IDC forecasting a year-on-year decline of 17.3% for the year as a whole, while the tablet market is expected to post nominal growth of 3.4%."

Smartphones will continue to cannibalize the share of PCs and tablets in Egypt, particularly as apps and customized websites for smartphones have made it convenient for users to access information on the go. "Most of the needs of consumers are now met by smartphones, and dependence on PCs has waned even further with the rising popularity of smartphones sporting larger screens," continues Dogra. "Indeed, the growing popularity of smartphones is reflected in IDC's Middle East and Africa Mobile Phone Tracker Q2 2015, which shows that smartphone shipments are set to increase 45.5% year on year for 2015 as a whole."

In terms of vendor shares for the Egyptian PC market, Dell led the way in Q2 2015 with a market share of 23.5%. Dell made a strong improvement over Q1 2015, growing its share from 8.7% and advancing its ranking from third place in the market. Dell grew primarily at the expense of HP, which slipped to third place after seeing its market share decline from 25.2% in Q1 2015 to 12.4% in Q2 2015. Lenovo retained its second-place position with a market share of 20.6%.

In terms of vendor shares for the tablet market, Lenovo led the way despite seeing its share slip from 30.2% in Q1 2015 to 24.7% in Q2 2015. Samsung was not far behind with 23.8% share, while Apple ranked a distant third with 9.1% of the market's shipments.

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Tags: Egypt