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Philippines PC Market stagnant in 2Q12, Says IDC

According to IDC’s Asia/Pacific PC Tracker, the Philippines PC market registered a flat growth of just 1.5% quarter-on-quarter (QoQ), shipping a total of 551,000 units in 2Q12. Overall consumer shipments showed little change from the previous quarter as Q1 market leaders Acer and Samsung saw their market share eroded by other vendors that launched aggressive pricing and hardware bundling strategies. There was little notable activity in the commercial segment as the large government projects seen in Q1 were not repeated in Q2.

The consumer market managed to maintain its quarterly shipments thanks to the improving performance of smaller vendor MNCs on the rebound. They were able to capitalize on the overstocking problems plaguing the top 2 vendors while resolving mininotebook processor shortages from the previous quarter. Mininotebooks regained prominence in the consumer market as pent-up demand from the previous quarter caused a surge in consumer uptake for this cheaper and smaller form factor.

According to Juan-Jin Ng, Market Analyst for Client Devices Research at IDC Asia/Pacific, "MNC PC brands are starting to encroach upon the market share of one another as the consumer market is not expanding at a rapid enough pace. As PC prices grow even more homogenous across most major brands, we will eventually see the stranglehold of the top 2 vendors on the retail market declining over the coming quarters."

The commercial market in 1Q12 improved just 1.7% QoQ to 224,000 units. Significant public sector rollouts to the Department of National Registration, the Bureau of Inland Revenue and the Department of Health ended in Q1 and did not spill over into Q2. However, initial Department of Education rollouts began this quarter and are expected to pick up in Q3. Vendors also recorded higher spending from Business Process Outsourcing (BPOs), which is a positive indicator for this important market segment in 2H12. Juan-Jin adds, "The resilience of the economy in the Philippines to the global economic crises as well as the commitment of the current government towards IT spending has kept the overall commercial segment outlook positive."

IDC has revised down its Philippines PC market forecast for 3Q12. Q3 will see a mild single digit growth as the back-to-school season in Q2 draws to a close, while consumer spending in retail is expected to be curtailed by the monsoon season. Juan-Jin continues, "In addition to the adverse impacts of the rainy season, Q3 PC shipments are not expected to increase significantly due to the launch of Windows 8 in Q4. Channels and retailers will likely hold off on stocking current models until the embargo on Windows 8 form factors is lifted on October 26. As such, the PC market should see a boost only in Q4. However, the PC market should find temporary respite in the commercial segment as government and enterprise spending, especially from BPOs, are expected to get underway in Q3."

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