Article by: International Data Corp.
Malaysia’s traditional PC market declined 9.6% year-on-year in the second quarter, with a total of 455,000 units shipped into the country, according to IDC.
Malaysia’s traditional PC market, including desktops, laptops and workstations, declined 9.6% year-on-year in the second quarter (Q222), with a total of 455,000 units shipped into the country, according to the international data company. . .’s (IDC) Global Quarterly Personal Computing Device Tracker. Since the reopening of the economy and the easing of restrictions on movement, demand for appliances in both the consumer and commercial sectors has weakened. Laptop shipments fell 15.5% y/y while desktops posted 7.6% yoy growth.
Consumer market spending shifts away from appliances when the lockdown is lifted, providing opportunities for people to travel, celebrate festive occasions, and engage in other recreational activities. Demand for laptops and even desktops has declined compared to the previous year, as the market has returned to normal and most purchases of such devices have been realized in previous quarters.
Despite the improving supply situation in the market, PC vendors are more concerned about the increasing difficulty of selling hardware as demand continues to weaken. Inventory across channels has started to build up, which has resulted in sellers taking less inventory during the quarter,” says Justin Peterson Low, Market Analyst, IDC Malaysia.
Since the lifting of lockdown restrictions again in the third quarter of ’21, sales of laptops have begun to decline, particularly in the commercial market where the workforce has been allowed to work on site. Demand for desktop computers has increased over time and was initially driven by purchases from the public sector. The Small and Medium Business (SMB) and corporate sectors are also seeing increased demand for desktop computers as more businesses return to the office. But the overall commercial market is still down 13.3% y/y due to the huge fulfillment of education that happened last year. Even the most recent education publication by the Ministry of Education (MOE) that came in in the quarter was not able to make up for the decline.
Top 5 Most Important Corporate News (Q222)
HP Inc. has led The overall PC market is in Malaysia, with a market share of 23.7% and shipment growth of 16.7% YoY. HP topped the consumer space with vendors hoarding inventory this quarter due to better supplies and healthy inventory levels. HP’s commercial shipments also benefited from backlog fulfillments.
Dell Technologies ranked second with a market share of 20.7% and growth of 12.3% year-over-year. Dell leads the commercial market, doing well in most sectors, particularly the education sector thanks to the significant achievement of the Department of Education’s 12 districts project this quarter. However, Dell’s consumer shipments fell.
Acer Group ranked third, with a 14.2% market share, but shipments were down 44.6% year-over-year in the Cerdik Initiative project for 37,000 Chromebooks in the education sector. Acer’s consumer shipments continued to grow sequentially, but recorded a year-over-year decline due to strong demand during the pandemic.
ASUS ranks fourth in the market with 11.2% share and 36.8% year-over-year growth. ASUS achieved a remarkable 50.1% growth in the consumer segment thanks to a strong inventory replenishment and liquidation of old inventory, but it lost momentum in the commercial segment due to the slowdown in demand.
Lenovo ranks fifth, with a market share of 9.9% and shipping declines of 24.2%. Lenovo did well in the business desktop category, posting 55.3% year-over-year growth as it generated several public sector transactions this quarter. However, shipments of consumers fell significantly due to pent-up stocks across channels and weak market demand.
“After weak sales during the first half of the year, PC shipments in Malaysia are expected to exceed the first half of 22 but will still be lower than the second half of 21 due to the significant inventory replenishment that occurred in 2021. The consumer market is likely to witness Increase in demand during 2H22 as vendors seek to run more promotional activities and physical IT events to increase sales.On the business side, demand in the private sector has slowed down since last year as most companies have been purchasing hardware in bulk, especially laptops due to work arrangements from Home. The Q3-22 project will remain quiet, but upcoming educational deals in Q4-22 will help boost shipments in the commercial market,” adds Lu.