PC shipments to the Levant countries of Jordan, Lebanon and Syria are forecasted to reach 212,223 units by the end of 2004, estimates IDC.
IDC indicates a surge in demand for PCs in the region, particularly within the government administration and education sectors – fuelled mainly by grants provided by Western governments and agencies.
Levant countries are attempting to attract foreign investment by implementing economic reforms – as evidenced by the regional commitment to join the WTO, the move towards the full implementation of e-government initiatives and the opening up of banking sectors to the private sector. This should create further inflows of foreign direct investment (FDI) in the coming year, translating into higher spending on PCs and related technologies.
In the private sector, spending will be influenced by vendors' efforts to attract the increased spending of consumers and small to medium-sized businesses (SMEs).
IDC's results for the year 2002 in the Levant indicate PC shipments reaching 153,922 units. Some of the notable factors that influenced PC sales growth in the region included a select few large-scale projects, as well as an increased uptake within the SME and SoHo segments.
Despite declining ASVs and end-user demand for cheaper desktops and portable PCs, shipment value increased to $153.52 million in the Levant region in 2002.
The year 2002 reflected many political and economic pressures within the Levant countries. "The tense situation in Iraq and the Palestinian territories, changes within local governments and the implementation of a new VAT system were main inhibitors of the market," commented Research Analyst, PC & Systems Group, for IDC MENA, Omar Shihab.
"Many large and very large businesses were cautious in their IT investments during 2002, however, numerous projects within the government and banking sectors were carried out, especially in Syria and Jordan," added Omar.
Lebanon was the largest market among the countries examined in the latest market study. The PC market in the country reached 64,136 units with a value of $64.96 million, to constitute 41.7 percent of total volume and 42.3 percent of value on the Levant PC market. The second-largest PC market was Syria, which totaled 45,038 units valued at $41.79 million. Jordan was third with 44,748 units valued at $46.78 million.
Portables are beginning to see more interest from end-users and therefore vendors pushed their models heavily in the market last year. Shipments of portables reached 16,686 units in the Levant in 2002 for a total value of $24.69 million.
According to IDC, the PC market in the Levant region is far from saturation, and still lags behind to more developed markets of the Gulf region, however, towards the end of IDC's forecast period, PC market growth rates begin to tail off in key segments of the economy.
"This will build up new opportunities for PC vendors to upgrade and replace existing PCs in large enterprises and the government sectors. There will also be opportunities for targeting the emerging SoHo, SME, and education sectors, where further growth is expected throughout the forecast period," commented, Shihab. "The dynamics of the Levant PC market are changing, and vendors that are able to adapt to the changes will be able to grow," he added. — (menareport.com)
© 2004 Mena Report (www.menareport.com)
