Hewlett-Packard Company (HPQ) Maintains Growth In Middle East and Africa (MEA) PC Market

The PC market in the Middle East and Africa (MEA) witnessed a 9.6% YOY drop in the first quarter as shipments totaled 4.3 million units, according to IDC data. However, Hewlett-Packard Company (NYSE:HPQ) continued to grow its market share to 26% with 6.5% YOY increase in volume. The company retained the top slot in the PC market in the MEA region.

Significant Gainer

Hewlett-Packard Company (NYSE:HPQ) strong sales in the first quarter prevented the Chinese company, Lenovo from improving its market share. Instead, Lenovo’s market share dipped to 18% from 29% in the MEA region though it remained the second biggest PC firm in the MEA region.

However, the significant gainer among the top three appeared to be Dell. The company’s PC market share in the MEA region surged to 17% from 13% in the year-ago first quarter. The growth of both the American firms in the MEA region was apparently due to the brand value both the companies enjoyed over the years.

The fourth positioned Toshiba suffered a worst 34.3% downturn in the first quarter while the fifth-placed Asus witnessed a YOY drop of 7.2% in the first quarter in the MEA region.

High Inventory

IDC pointed out that the currency impact and lower oil prices have played a part in the PC market’s overall drop in the MEA region. It is a well known fact that the Middle East economy depends on the oil prices and any negative impact will percolate to other sectors too in the region. Another reason is the high level of inventories held by the channels in the region, according to IDC’s research manager, Fouad Charakla.

As far as the full year is concerned, the research organization expects the PC market to witness a drop of 4.8% in the MEA region to 17.3 million units. The higher inventory level is expected to be extended to several parts in the region. In the first quarter, Turkey faced the higher inventory level. Also, the devaluation of some big global currencies would unfavorably impact the PC demand. It remains to be seen whether Hewlett-Packard Company (NYSE:HPQ) will continue its performance in the remainder of the period.

Viraj Shah

Viraj Shah has completed M.Com (Finance) and is currently pursuing his CFP. He tracks US markets along with other global markets like India very closely. He is very passionate about stocks, real estate, and technology. He also believes that money can always be made in the market.

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