PC price slash leaves mark on ASPs

Ten per cent drop in average selling prices not enough to jumpstart growth in European PC market, Context figures indicate

Average selling prices (ASPs) in the European PC market plummeted by a tenth in the third quarter of 2011 as vendors moved to clear excess inventory.

According to research house Context, PC sales revenues through Europe's top distributors fell by 11 per cent year on year in the three months to 30 September. The fall was due almost entirely to a 10 per cent drop in ASPs on the back of aggressive vendor price cuts.

Context said the inventory glut had been building since the end of 2010.

Italy and Spain were among the countries worst impacted, with revenues down 21 and 15 per cent year on year, respectively.

Context's data also suggested predictions that HP's recent announcements around its Personal Systems Group would scare off customers may have been wide of the mark. HP's share of total unit sales through distribution rose from 31.6 to 33.6 per cent year on year in Q3.

Context chief executive Jeremy Davies said: "HP's announcement on exiting the PC business in August has to yet to have any negative effects on the company's share in the quarter."

The draw of cut-price stock was enough to ensure unit sales rose nine per cent sequentially during the quarter, Context added.