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Australia bucks PC market gloom

Australia bucks PC market gloom

- Australia was one of the few buoyant PC markets in the Asia/Pacific region during the second quarter, when it achieved stronger growth than the worldwide market as a whole, according to a new IDC report.

Preliminary analysis, according to IDC analysts, shows the Australian market grew between 10 and 12 per cent during the quarter, flying in the face of diminishing markets in Asia/Pacific and Japan, and eclipsing the worldwide growth of just seven per cent year-on-year.

According to IDC Australia's senior PC analyst Bernie Esner, the encouraging performance in Australia was driven in part by the purchasing activities of the large business and government sectors in the second quarter, which is historically the best period for PC sales.

Esner cautioned, however, that some warning signs have begun to appear.

"Each quarter in our industry is like a year in any other business because of the rapid product rotations and relentless price cuts on superseded models", he said.

"Extremely fast product transitions led to excess inventory in the second quarter, causing indirect vendors to cut prices or bundle peripherals and software as a bonus to attract buyers. In addition, most resellers and mass merchants were forced to promote financing options, like rental, leasing and interest-free terms," Esner said.

The report, titled "Australian PC Market Dynamics - Q2 1998" can be found at http://www.idc.com.au


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