Brand names claw SMB business away from local PC builders

Brand names claw SMB business away from local PC builders

Local PC builders are under increasing pressure from OEMs seeking traction in the small business space, according to quarterly results showing that brand name vendors clawed back about 8 per cent of PC shipments into the SMB sector.

While overall shipments into the SMB market were up 27 per cent on the previous quarter, HP’s shipments were up 90 per cent into that space, according to IDC figures which exclude the SOHO market.

The market share for local builders was down by about 8 percent, from 47 per cent in Q1. The top five vendors, HP, IBM, Toshiba, Acer and Dell all recorded growth for the quarter but system builders had lost ground, IDC market analyst, personal computers, Imraan Ali, said.

“If HP’s stealing share from anyone, it’s them,” Ali said.

Local systems builders, traditionally strong in the small business space, were being squeezed by OEMs seeking sales in a maturing PC market, he said.

But OEMs were far from stitching up the SMB market. Local system builders still accounted for “a massive” 38.6 per cent of the total SMB market in Q2, Ali said.

This figure was made up of larger system builder players such as Optima, as well as numerous small players who were “not even on the radar of most multinationals ”, he said.

But the quarterly decline wasn’t all bad for systems builders when seasonal issues were taken into account, Ali said.

“SMB takes a back seat” in the second quarter, he said.

The traditional sales focus for the quarter was on larger corporates spending their IT budgets prior to financial year end on June 30, he said.

For more on this story, see this week's issue of ARN.

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