E-Business
Currency Fluctuations, Weak Demand Impact EMEA PC Market 2Q2015- IDC
PC shipments in Europe, the Middle East, and Africa (EMEA) reached 17.2 million units in the second quarter of 2015, posting a 21.6% decline year-on-year, according to International Data Corporation (IDC).
But, as expected, the market continued to suffer from unfavorable exchange rates which led to higher price points and weaker demand, with the decline deepened by the adverse year-on-year comparison with a very strong first half of 2014, when Windows XP related renewals boosted shipments across the region.
In addition, high inventories translated into lower shipments in this transition quarter, as the industry focuses on stock depletion in preparation for the Windows 10 launch later this summer.
“The second quarter was, as expected, a transition period between the very popular Microsoft Bing promotion, which supported sales over the past four quarters, and the forthcoming launch of Windows 10 at the end of July,” said Chrystelle Labesque, associate director, IDC EMEA Personal Computing.
All three EMEA regions suffered a strong contraction in PC shipments, with Western Europe posting a 19.3% decline, while CEE and MEA both dropped year-on-year, at -24.3% and -25.7% respectively.
Currency fluctuations and inventories contributed to these weak results in all three geographies. Both consumer and commercial segments recorded strong double-digit declines.
Commercial shipments declined 18.9% due to an unfavorable year-on-year comparison with 2014, when many businesses transitioned away from Windows XP and renewed their older devices.
Consumer shipments on the other hand contracted 24%, following the accumulation of Bing inventories across multiple geographies.
The results in both segments were weaker than anticipated, as demand did not meet expectations and many vendors were forced to reduce new shipments to clear inventories and be ready for the launch of new products in time for the back-to-school season.
To benefit from the latest available operating system, some of the back-to-school business has been delayed to later this summer. While portable PCs declined 18.5% across EMEA, desktop PCs posted much weaker results, contracting 26.4%.
This product category is still relevant in the commercial segment, although it is subject to enterprise renewal cycles, while the decline continues in the consumer market, as end users move to mobile devices such as notebooks, tablets, and smartphones.
PC shipments in Western Europe totaled 10.7 million units, with the consumer segment showing the strongest contraction, at -20.8%.
The market was affected by high stock levels, in particular for Windows Bing notebooks, as well as an unfavorable euro/dollar exchange rate which led to an increase in prices and contributed to a slowdown in demand.
Commercial shipments contracted 17.9%, with an adverse year-on-year comparison weighing on the result.
Southern European countries again performed better than the overall Western European market, with Spain and Portugal posting 4% and 2% growth respectively.
Italy contracted by 6%, a much softer decline than the Western European average.
Ongoing Windows XP renewals in the commercial space and the continued economic rebound in these countries contributed to the more positive results.
On the other hand, central and northern European countries all posted declines, affected by high inventory levels, weakening demand, and adverse year-on-year comparisons.
Germany and the Netherlands were the most affected, with PC shipments contracting by as much as 34% and 37% respectively.
“The decline in the consumer market in Western Europe came in line with our expectations,” said Maciek Gornicki, research manager, IDC EMEA Personal Computing. “Strong Bing shipments in the past several quarters led to high inventory levels and we anticipated that the industry would focus on stock depletion this quarter in preparation for the launch of Windows 10 and introduction of new products for the back-to-school season.
“The commercial market results, however, came in lower than expected. It seems that the increase in price points due to adverse currency fluctuations has taken its toll on demand and forced businesses to postpone some renewals. Many companies are also waiting for the new products to be launched with the new CPU platform later this year.”
“The PC market in the overall CEMA region in 2Q15 performed lower than forecast with the Middle East and Africa posting the worst results in years,” said Stefania Lorenz, associate VP, IDC CEMA. “The MEA region reported an overall decline of 25.7%. The major inhibitors were the high inventories across the region, the ongoing political and economic instability, and the currency fluctuations. Turkey, the largest PC market in the region, performed the worst, due to high inventory and the lack of government deals.”
“The PC market in Central Eastern Europe came in as forecast at -24.3%,” said Nikolina Jurisic, product manager, IDC CEMA. “The desktop PC market exhibited a stronger decrease than portables as the XP renewal wave is mostly over and comparisons to 2014 growth rates were unfavorable. The high inventory of portable PCs in most countries at the end of 1Q15 due to the end of the 15in. Microsoft Bing notebook promotion caused a major slowdown in sell-in during the second quarter with vendors and channels focusing on inventory depletion during 2Q.
“The dynamics on a country level were very different. Czech Republic and Poland both reported better results thanks to some deals in the government sector and relatively good consumer demand. The eastern part of the region continues to be negatively affected by devaluation of the local currencies in addition to the economic slowdown.”
“The industry is now focusing on the successful launch of Windows 10 in the coming weeks,” said Labesque. “However, the impact on hardware might be limited in the short term as the free upgrade approach for consumers does not require new hardware in many instances. For enterprises, most companies always conduct tests of the new operating system for several months before upgrading their platform and there, too, it might not require a hardware refresh. Overall, however, a large number of businesses are considering upgrading to Windows 10, supporting the next refresh cycle in the mid-term, particularly on mobile devices.”
Vendor Highlights
The market consolidation trend has been confirmed with the top 3 players consolidating their positions.
However, those vendors that pushed fewer Bing shipments in past quarters have benefited this quarter from year-on-year comparisons.
HP performed better than the overall market, but contracted in both consumer and commercial segments.
Strong results a year ago led to an adverse year-on-year comparison, while significant sell-in of Bing notebooks in past quarters also contributed to lower shipments in 2Q as HP prepares new products for the back-to-school season and Windows 10 launch.
HP results in CEE were strong with shipments growing annually.
Lenovo continued to outperform the competition and to gain shares annually. It maintained second position in the market although the vendor posted a decline in shipments.
High inventory in the channels and weaker demand affected its results.
Dell posted a strong quarter and was third in the EMEA ranking.
Results in commercial PC shipments were better than the market average and Dell increased its share in commercial portable PC shipments in EMEA.
ASUS climbed to fourth place in the ranking but its shipments declined in line with the market.
The limited Bing shipments reduced the vendor’s exposure this quarter.
Acer came in fifth with shipments declining across all EMEA subregions due to weak demand.
The vendor also focused on clearing inventory ahead of the new shipments for the back-to-school season.
Outside the top 5 vendors, Apple had a very strong quarter with growth reaching double-digit levels and market shares growing significantly as the vendor benefited from shipments of its new product portfolio.
Toshiba continued to focus on profitable growth, limiting shipments in some countries, which led to significant contraction, while Fujitsu posted a strong decline due to an adverse year-on-year comparison with 2Q14 when the end of Windows XP related renewals boosted the vendor’s shipments.
MSI came in 9th and Wortmann 10th.
Dexude, a leading edtech platform with operations in Nigeria, has announced that it has been awarded the prestigious Business Finland TEMPO funding.
Charles Emembolu, founder of Dexude,
This significant funding injection marks a pivotal moment in Dexude’s journey towards transforming education through its AI-powered, live-first, expert-led, and community-driven platform.
The Business Finland TEMPO funding is specifically designed to support startups and SMEs aiming for international growth by building their expertise and solutions into international success stories in innovative ways.
Dexude’s commitment to innovation, coupled with its vision to enable a billion learners worldwide, aligns perfectly with the objectives of the TEMPO funding.
Commenting on this milestone achievement, Charles Emembolu, founder of Dexude, remarked, “We are incredibly honored and excited to receive the Business Finland TEMPO funding. This funding is not only a validation of Dexude’s mission to reinvent education but also a testament to the hard work and dedication of our team. With this support, we are poised to accelerate our efforts in democratizing access to quality education and empowering learners across Nigeria and beyond.”
L-r; Kelvin Chikezie, co-founder of Dexude; Kashifu Inuwa Abdullahi, Director-General/CEO of the National Information Technology Development Agency (NITDA); and Charles Emembolu, founder of Dexude
Kelvin Chikezie, co-founder of Dexude, added, “Securing the Business Finland TEMPO funding is a significant milestone for Dexude. It underscores our commitment to leveraging technology and innovation to revolutionize the way people learn and grow. We are grateful to Business Finland for believing in our vision, and we are excited to embark on this next chapter of Dexude’s journey.”
Dexude is on a mission to redefine education by providing learners with access to influential experts and thought leaders, live interactions, and a vibrant community-driven learning experience.
Through its platform, Dexude aims to break down barriers to learning and empower individuals to pursue their passions and unlock their full potential.
SOPHiA GENETICS, a cloud-native software company in the healthcare space and a leader in data-driven medicine, has announced that Nigeria-based Syndicate Bio has signed on to implement MSK-ACCESS® powered with SOPHiA DDM™.
Syndicate Bio is the first lab in Africa to adopt the MSK-ACCESS® assay via the SOPHiA DDM™ Platform, and the first company to make comprehensive genomic profiling and liquid biopsy widely available to patients throughout the entire continent.
The implementation of this new technology will further existing work from SOPHiA GENETICS, Memorial Sloan Kettering Cancer Center (MSK), and Syndicate Bio to advance health equity on a global scale.
There are roughly 1 million new cancer patients each year in Africa and currently, comprehensive genomic profiling and liquid biopsy testing options are not widely available.
This means that patients are forced to forego this testing or travel out of continent for these testing options. Syndicate Bio’s implementation of this new offering will provide cutting-edge liquid biopsy testing to many of these patients and will help progress the company’s goal of advancing genomics and precision medicine in an area of the world that has been historically underserved in these areas.
“Partnering with SOPHiA Genetics to bring MSK-ACCESS® powered with SOPHiA DDM™ to our lab is a monumental step in accelerating the cancer treatment and research landscape across Africa, beginning in Nigeria. Next-generation sequencing technologies in oncology and liquid biopsy, which this collaboration enables, hold the potential for creating a leapfrogging opportunity in the oncology treatment and research landscape in Africa,” said Abasi Ene-Obong, PhD., Founder, Syndicate Bio.
“Through this collaboration, we aim to enable the widespread application of precision medicine in oncology across Africa, and thus contributing to the improvement of patient outcomes across the African continent.
“We believe our scientific expertise, combined with AI-enabled technologies and data-driven solutions enabled by SOPHiA GENETICS, presents a unique opportunity to fundamentally transform the journey of cancer patients through non-invasive cancer analysis, predictive genetic testing, and effective precision medicine.”
Syndicate Bio is driving genomics and precision medicine initiatives across the world’s most diverse regions through large-scale partnerships with governments, industry, and other stakeholders. Through its work, Syndicate Bio is making local impact while accelerating drug discovery and development.
By focusing on Africa, Syndicate Bio is poised to make a significant impact, starting with Nigeria, by introducing its pioneering clinical oncology offerings in an underserved region.
Through this endeavor, Syndicate Bio aims to improve cancer diagnosis and treatment for African patients. This initiative not only facilitates local next-generation sequencing (NGS) testing and liquid biopsy testing but also extends access to clinical trial participation, empowering patients and healthcare providers alike.
MSK-ACCESS® powered with SOPHiA DDM™ is a decentralized version of a highly validated ctDNA test developed by MSK that involves the deep sequencing of 146 key cancer-associated genes, and will augment Syndicate Bio’s tumor profiling capabilities, allowing them to utilize a small blood sample to generate a comprehensive report in an efficient and expedited time frame.
The use of liquid biopsy is less invasive than traditional biopsy, and can help simplify patient monitoring, whilst driving the uptake of precision medicine.
The offering combines the sophisticated analytics, state-of-the-art algorithms, and decentralized, cloud-based offerings of the SOPHiA DDM™ Platform, with the scientific and clinical expertise of MSK in cancer genomics to provide a best-in-class liquid biopsy solution.
“In our mission to democratize data-driven medicine, our decentralized global network and unique set of partnerships enable us to help reach underserved populations, just as those that are served by Syndicate Bio,” said Philippe Menu, MD, PhD., Chief Medical Officer, SOPHiA GENETICS.
“By implementing this solution, Syndicate Bio will make a measurable impact throughout Africa, while also helping to generate an unparalleled and comprehensive dataset and provide invaluable insights and knowledge to shape the future of global healthcare.”
In late 2023, SOPHiA GENETICS and MSK announced they are working in partnership with AstraZeneca to bring the world-class MSK-ACCESS® powered with SOPHiA DDM™ testing solution to countries and regions around the globe, including underserved areas where access to testing remains scarce.
Mallam Kashifu Abdullahi, director-general, National Information Technology Development Agency (NITDA), has reaffirmed the importance of collaboration in advancing Nigeria’s digital transformation agenda.
L-R: Mallam Kashifu Abdullahi, director-general, National Information Technology Development Agency, with Brig. Gen., Abdulrahman Idris, team lead of the Senior Executive Course 46 2024, National Institute for Policy and Strategic Studies, Kuru, Jos during a strategic tour visit to the agency headquarters in Abuja.
Abdullahi disclosed this during a strategic engagement with participants of the 2024 Senior Executive Course 46 from the National Institute for Policy and Strategic Studies (NIPSS), a delegation led by Brigadier General Abdulrahman Idris.
Abdullahi emphasised that no organisation can achieve its goals in isolation, stressing the need for collaborative efforts to harness ideas, experiences and insights for national development. He highlighted the potential of collaboration between NITDA and NIPSS to leverage technology and digital innovation for driving economic growth, creating job opportunities and attracting foreign direct investment (FDI).
“At NITDA, we have re-imagined our social contract with Nigerians, focusing on improving service delivery and fostering the swift growth of the ICT sector,” said Abdullahi. He emphasised the agency’s commitment to serving Nigerians and outlined the strategic direction outlined in NITDA’s Strategic Roadmap and Action Plan (SRAP 2024-2027) 2.0. The SRAP is structured around eight pillars aimed at fostering digital literacy, building a robust technology research ecosystem, strengthening policy implementation, promoting inclusive access to digital infrastructure, enhancing cybersecurity, nurturing innovation and entrepreneurship, forging partnerships and cultivating a vibrant organisational culture.
The brigadier-general provided insights into NIPSS’s role as Nigeria’s foremost policy think-tank, tasked with developing top-class technocrats to drive national development initiatives. He highlighted NIPSS’s contributions to policy formulation and implementation over the years, emphasising the institution’s mandate to address issues of national interest, particularly in the digital economy sector.
The collaboration between NITDA and NIPSS underscores the importance of synergistic efforts in harnessing technology and innovation for national development. By leveraging each other’s expertise and resources, both organisations aim to drive economic growth, foster job creation, and position Nigeria as a leading player in the global digital economy.
Through strategic partnerships and collaborative initiatives, NITDA and NIPSS are poised to chart a path towards sustainable development, leveraging digital innovation as a catalyst for socioeconomic transformation and inclusive growth.
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