Falling price and raising awareness drives PC market in Sri Lanka: IDC

Posted on June 27, 2007  /  1 Comments

Sri Lankan PC shipments (desktops and notebooks) reached 52,230 units in the first quarter of 2007, which was approximately a 17.5% annual growth rate. Desktop remains the primary form factor as it accounts for almost 87.5% of shipments.

Notebooks, however, have been performing relatively well. IDC forecasts that desktops will post a compound annual growth rate (CAGR) of 11.7% from 2006-2011. Notebooks, on the other hand, are expected to register a CAGR of 22.7%, announced IDC on Wednesday.

“Both the consumer and commercial segments have been key drivers for the market’s activity. Heightened vendor marketing efforts has provided consumers with more knowledge while continuing PC price drops has granted buyers more purchasing power,” said Linus Lai, Research & Consulting Director for IDC Emerging Asia.  

Currently, the size of the Sri Lankan notebook market remains relatively small mainly due to the expensive price points for notebooks in the consumer segment. Moreover, enterprise adoption is contained to the higher management positions.

However, a number of factors will drive notebook adoption in the Sri Lanka market. Price competition among vendors will lead to declining prices that will make notebooks more affordable to buyers. Increasing awareness over mobile computing is also expected to be a key factor.

Lastly, vendors working more closely with their channels, as evidenced by the heightened notebook marketing programs that were implemented last year, are expected to continue. 

From the commercial perspective, projects were mainly centered around the financial services industries (FSIs), manufacturing, and telecommunications. In addition, the national government remained a very significant contributor to IT hardware spending through computerization projects involving the Information and Communication Technology Agency, Ministry of Education, and government-owned agencies and banks.

Although the tourism, services (BPO), and logistics sectors are traditionally deemed as important drivers for Sri Lanka’s economic growth, IDC remains positive of the PC market’s performance for both the consumer and commercial segments. Sri Lanka will have to pursue an economic policy that will reflect a positive attitude towards foreign investments while maintaining peace and order internally.

1 Comment

  1. Hope prices will go down.. cos I also wanna buy a notebook but can’t afford the price :(