Gartner Says Latin American PC Shipments Increased 10 Percent in the Second Quarter of 2003
STAMFORD, CONN., August 21, 2003 — Despite a flat Brazilian market, PC shipments in Latin America surpassed 2 million units in the second quarter of 2003, a 10 percent increase from the same period last year, according to Gartner, Inc. (NYSE: IT and ITB).
"Compared with the weak second quarter in 2002 — when Hewlett-Packard's acquisition of Compaq became final, clearing market uncertainties — these results, while positive, are by no means an indication of a healthy market," said Luis Anavitarte, vice president and research director for Gartner's Computing Platforms Latin America group. "Pockets of PC demand in the professional segment are helping to move sales, but insufficient credit and high interest rates are hurting businesses in their IT investment needs."
HP continued to lead the overall PC market in Latin America in the second quarter of 2003 with 11 percent market share (see Table 1). HP experienced a solid rebound in the notebook space with 38 percent growth. Dell continued to perform solidly, holding onto the No. 2 spot with 6.2 percent market share. Dell's model continued expanding in Mexico, where the company grew 57 percent. Dell also showed strong growth in Chile and Colombia.
Table 1
Latin America PC Vendor Unit Shipment Estimates for 2Q03 (Units)
Company
2Q03 Shipments
2Q03 Market Share (%)
2Q02 Shipments
2Q02 Market Share (%)
Growth (%)
Hewlett-Packard
225,710
11.0
215,350
19.1
4.8
Dell
126,980
6.2
87,484
6.5
45.2
IBM
78,123
3.8
92,181
4.9
-15.3
Alaska
45,321
2.2
48,093
3.5
-5.8
Toshiba
29,595
1.4
25,259
2.5
17.2
Others
1,551,522
75.4
1,409,719
63.5
10.1
Total
2,057,251
100.0
1,878,086
100.0
9.5
Note: Table includes desk-based PCs and notebooks.
Source: Gartner Dataquest (August 2003)
With HP declining in the Latin America consumer PC markets, Gartner analysts said that the home PC segment is now overwhelmingly in the hands of local nonbranded system builders throughout the entire region. "The top three local Brazilian and Mexican vendors also declined in shipments, showing that well-established local PC vendors are not immune to the nonbranded boxes either," Anavitarte said.
Gartner analysts said that the combination of right prices, service and enhanced technologies and platforms, such as Intel's Centrino, are helping expand the notebook industry, which grew 24 percent in the second quarter of 2003. "There is a smarter vendor pricing strategy in the notebook industry of trying to find the right balance between growing their market share and generating reasonable profitability," Anavitarte said. "Lower price points are already acting favorably which will allow this industry to penetrate newer segments of end users throughout Latin America and avoid notebook equipment renewals abroad."
Even with growth of only 1.6 percent, Brazil remained the No. 1 country for PC shipments in the region with 900,000 units shipped. Due to higher sales by Sony, HP and Dell, Mexico grew 5 percent and remained the No. 2 market in the region with shipments of 460,814.
Argentina recorded the strongest growth rate of 236 percent. Argentina's faster-than-expected rebound can be attributed to a more politically stable environment after the presidential elections. A steadier and sustainable growth of the PC industry in Argentina will emerge once credit for IT purchases is re-established for the corporate segment.
Chile also experienced robust growth, with shipments increasing 15 percent in the second quarter of 2003. "The recent trade agreement between the U.S. and Chile has had a strong impact on business confidence, and we are starting to see more aggressive PC equipment renewals and implementation of technology in general," Anavitarte said.
This information is produced by Gartner's Computing Platforms Latin America group. The group provides research on key aspects of the dynamic PC, server and printer hardware markets in Latin America. The focus is on regional and country issues in the top eight Latin American markets and the Rest of Latin America (ROLA) category, where Central American and Caribbean countries are grouped. To subscribe to this program, please call 408-468-8000.
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