Middle East HCP sales fall in Q2 as economic slowdown fuels uncertainty, says IDC

According to market research company IDC, the market's value overcame the shortfall, however, to grow 4.1% quarter-on-quarter, following a change of focus from several vendors towards promoting higher-end products to achieve their value targets.

The overall market stood at around 825,000 units valued at approximately $327m, driven primarily by the volume and value growth of multifunctional peripherals (MFP) shipments, which were responsible for 43.4% unit market share. Both single-function printers and copiers witnessed double-digit declines in unit shipments, which clearly reinforces IDC expectations of a stronger shift to MFP products in the coming quarters.

In terms of technology, inkjet devices recorded the biggest quarter-on-quarter unit decline at 14.6%, while shipments of monochrome laser products remained stable, growing 0.6% in volume over Q1. Color laser devices were the star performers, as shipments grew by around 11.0% in both volume and value for the quarter.

On a country level, Egypt was the fastest growing country in the region with quarter-on-quarter growth of around 26.0% in volume and 62.5% in value, reflecting the country's strong potential and its healthy business environment. Saudi Arabia saw a slight quarter-on-quarter decline of 1.0% in volume, while the UAE posted a moderate 1.7% increase in unit shipments.

The changing dynamics in the market can mainly be attributed to growing uncertainty across the region, which has been fuelled by increased inflation in several countries and a lack of consumer confidence.

Several vendors had to review their short-term plans to accommodate the slower market, while others have adopted more dramatic precautions. There was a clear shift from lower-end single-function printers to MFPs, particularly in the retail sector, where the price gap between the two technologies has diminished tremendously over recent years. The shift to more advanced technology can also be explained by improved consumer awareness and an increase in the complexity of end-user requirements.

In line with the current situation, IDC is confident the market is moving towards a higher ratio of MFP devices and an increase in the deployment of laser technology. While a decline in shipments may still be seen in the coming quarters, IDC believes that a greater emphasis will be placed on the value aspect of the market, ensuring a healthier return for vendors and their channels.