Rampant Discounting Drives PC Market Apple & Toshiba Get Big Growth

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Toshiba has recovered from a poor 2010 to record big growth in notebook sales in 2011 due to rampant discounting up to 40 percent, according to new IDC data. Apple significantly outperforming the market while demand for netbooks dropped 30 percent.Overall the Australian PC market grew 6 percent YoY and 3 percent sequentially in Q1 2011 to reach just under 1.5 million units. Despite increased uptake of all-in-one desktops by consumers, the overall desktop market maintained its gradual downward trend as the shift to mobile computing continues, IDC Claimed.

Demand for mini-notebooks dropped significantly, by 30 percent over the same period last year given competition from media tablets, declining notebook prices and increased interest in 11 inch screen size notebooks in the education space.

While Intel’s Sandy Bridge glitch resulted in delays of new product refreshes, vendors and channel partners were able to recover promptly and opted for 1st generation Core-i systems or AMD systems as alternatives. “The overall impact of the recall was marginal. Although, AMD benefited from the glitch and experienced a significant uplift following the recall,” said IDC analyst Amy Cheah.

“There was a slight pickup in SMB spending driven mainly by businesses and channel partners looking to replace damaged or lost PCs as recovery efforts from the Queensland flood crisis took place,” said Cheah. “A stronger push into the channels from vendors such as Toshiba and Acer in anticipation of the end of financial year tax rush further contributed to the growth.”

Despite a sluggish Q4 2010 and weak consumer sentiment, Apple and Toshiba significantly outperformed the market with double digit sequential growth respectively. Toshiba recovered from a disappointing performance last year by driving an aggressive 40 percent price discount on all Toshiba notebook brands exclusively in Harvey Norman stores nationwide. Apple on the other hand consistently gained market share since Q3 2010, fueled by strong demand for its Macbook Air and Macbook Pro range in addition to its growing retail presence through its Apple stores.

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