SMB and SoHo segments continue to drive the Gulf PC market in Q2 2005, says IDC

Desktop shipments increased by 33.5% and notebook shipments by 95.3%. The x86 segment contracted by 8.1% compared to the same quarter as last year.

"All GCC countries enjoyed prosperous economic conditions in the second quarter of 2005, thanks to high revenue in the oil and gas industry due to higher prices," says Sameh Ahmad, Research Analyst, IDC Middle East and North Africa. "This allowed governments to increase spending on personal computers and on IT infrastructure in general. This trend should continue in the future as the six GCC countries remain under-penetrated in terms of PCs."

Overall, IDC anticipates that the economies of GCC countries will stay strong in the coming months. Demand for PCs will continue to heighten as more projects within various segments continue to roll in. Decreasing average end-user prices (ASP) on all form factors and an increase in uptake in the under-penetrated SME segment will also have a positive effect on PC shipments in the region.

United Arab Emirates PC Market

PC shipments expanded a strong 64.7% year-on-year in volume in Q2 in the UAE, with increased sales across all form factors. Notebooks sales shot up by 86.9% to account for 54.9% of total PC shipments in Q2 2005, up from 48.4% in the same period last year. Desktop unit sales were up 45.4% and x86 server shipments grew 24.0%.

"Notebooks were the fastest growing form factor in the Emirates thanks to large uptake by small office and home users (SoHo) and small and medium enterprises (SME)," says Omar Shihab, Senior Analyst, IDC Middle East and North Africa. "Projects in the oil and gas industry as well as SME spending drove the desktop market in the UAE in Q2."

Kingdom of Saudi Arabia PC Market

Compared to the same period as last year, the PC market in Saudi Arabia grew a healthy 60.2% in Q2 2005. Desktop shipments increased by 31.8% while the notebook market expanded a remarkable 120.7% year-on-year, lifting notebooks to almost 47% of total shipment volume, up from just over 34% in Q2 2004. The x86 server market contracted by 33.4% year-on-year due to project delays that will likely come through in the third quarter.

"Marketing campaigns and price promotions associated with the GITEX exhibition in Saudi Arabia played a major role in spurring notebook sales in the SME sector," says Shihab. "Education drove the desktop market, with the sector accounting for almost 25% of sales. Nevertheless, there were other important sectors; oil and gas, telecommunications, and banking and financial sectors all buoyed the desktop market in the second quarter."

Other Gulf Council Countries (Kuwait, Qatar, Oman, and Bahrain) PC Markets

The PC market in Other Gulf Council Countries (OGCC) grew by 32% year-on-year in Q2 2005. Unit sales of desktops expanded 24.4% over the same period as last year, with much of the growth stemming from large projects in the government and education sectors. Sales of notebooks surged 62% over Q2 2004 while the x86 server market contracted by 22% in volume.

"PC penetration rates remain low across all segments in these countries," says Ahmad. "Vendors are therefore placing a greater emphasis on these countries by appointing new partners and undertaking more aggressive marketing campaigns."