Corporate devices market set for boost in H2 - analyst

Corporate renewal cycles will bolster H2 devices shipments, claims IDC

Shipments of personal computing devices in western Europe are set to decline in H2, according to IDC, but the commercial space is set to see a boost.

The analyst firm stated that overall shipments of devices will total 76.2 million in 2018, representing a 3.4 per cent year-on-year decline.

However, the commercial device market - including desktops, workstations, notebooks and tablets - is undergoing a renewal cycle which will pick up steam in the latter half of this year, IDC claimed.

Renewals in the commercial space are occurring at a faster pace than anticipated, in spite of the ongoing components shortage.

The midmarket is predicted to be the driving force in renewals, with support from corporate deals and the improved public and private IT spending in major European countries.

Liam Hall, research analyst IDC Western Europe personal computing, stated that Windows 10 adoption was also a factor in the health of the market.

"Windows 10 adoption and commercial renewals, particularly in the midmarket, are expected to drive the market in the second half of 2018," he said.

"The immediate outlook for consumer is more challenging, however, as relatively high inventory is expected to further dampen the sell-in, while the component shortage is likely to act as an additional hindering factor to the overall performance."

Replacing traditional desktops in favour of small and ultra-small form factors is becoming more popular in larger companies and installed base renewal will generate the first positive year for desktops since 2014, IDC said.

Slate tablets will represent the biggest share of the market with 30 per cent, followed by traditional notebooks with a 20.3 per cent share and ultra-slim notebooks with a 16.5 per cent cut of the market.

The analyst firm also predicted that the notebook sector will see ultra-mobile and hybrid solutions continue their growth as enterprise adoption will continue to fuel demand for versatile devices.

It is also predicted that by 2022, ultra slim notebooks will have the most shipments, increasing its market share to 22.2 per cent, with shipments of slate tablets falling to 20.8 per cent.

Western Europe Traditional PC and Tablet Forecast by Product

2018Q2 Forecast for 2018 to 2022 (Shipments in Thousands)
Source: IDC Worldwide Quarterly Personal Computing Device Tracker, 2018