Increased unit sales can't beat price cuts; HP sales unaffected

PC revenues down 11% in Europe

IT market research company Context has revealed sluggish PC sales across Europe for 2011.

The firm reports that PC sales (excluding tablets) by the region’s top distributors, representing around half of all sales in the third quarter of 2011, rose by nine per cent compared to the previous quarter. This was likely due to price cuts in order to clear stock that had built up during the end of 2010 and first two quarters of 2011.

Consequently, there was a ten per cent drop in average selling prices, which meant that sales revenues collapsed for the quarter and were down 11 per cent compared to the same period a year ago.

Consumer demand for the quarter were said to ‘languish’, while consumer-orientated products were down 18 per cent for the quarter compared to last year.

Sales were worst affected in Southern Europe, with unit sales of PCs excluding tablets down by 10 per cent in Italy compared to last year, while revenues were down by 21 per cent. Spain told a similar story, with unit sales falling seven per cent, and revenues falling 15 per cent.

“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”, commented Jeremy Davies, co-founder and CEO of Context. “The company’s share of total unit sales through distribution rose from 31.6 per cent in Q3 2010 to 33.6 per cent in Q3 2011.”

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