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29 May 2018

Turkey’s PC Market Sees Strong Growth but Tablet Shipments Fall Short of Expectations

Istanbul — Turkey's personal computing devices (PCD) market, which comprises desktops, notebooks, workstations, and tablets, grew 9.3% year on year in shipment terms during the first quarter of the year, according to the latest insights from International Data Corporation (IDC). The global technology research and consulting firm's newly released Quarterly PCD Tracker shows that shipments totaled 884,632 units in Q1 2018, in line with IDC's previous forecast. However, this represents a decline of 20.0% when compared with the final quarter of 2017.

Looking at PCs in isolation, shipments were up 16.2% year on year, well ahead of previous forecasts. "Q1 2018 saw a continuation of the positive environment that characterized the PC market in Q4 2017," says Ayse Kaptanoglu, a senior research analyst at IDC Turkey. "Some of the large corporate deals won during that quarter were shipped in Q1 2018, while consumer demand remained strong in the retail sector with the help of various VAT discount campaigns, the gaming category continued to attract consumers, and a number of significant government tenders were awarded, all of which led to better-than-expected results in the PC domain."

The numbers for tablets were not as promising, with shipments up just 2.3% year on year in Q1 2018, well below expectations. "Overstocking issues from Q4 2017 resulted in tablet vendors being more cautious with their shipments," says Kaptanoglu. "Increasing component costs, particularly for panels, compounded the situation, causing costs to rise and making it more difficult to compete with some local tablet vendors. In an attempt to heat up the market, various telcos launched campaigns but only a few vendors were able to provide appropriate price points for that channel."

The top three places in the Turkish PC market continued to be occupied by Lenovo, HP Inc., and Asus in Q1 2018, with Lenovo taking top spot with 25.4% share of PC shipments, up from 20.0% in the corresponding quarter of last year. HP Inc. dropped to second with 20.3% share, while Asus remained in third place with 12.1% share. Samsung retained leadership of the Turkish tablet space in Q1 2018 with 25.4% unit share. TCL ranked second with 10.2% share, while Apple secured third place with 9.2% share.

"Looking ahead, Q2 2018 is likely to present a much more challenging environment for the Turkish PCD market," says Kaptanoglu. "Ongoing economic uncertainty, early elections, devaluation of the Turkish lira against the U.S. dollar, and a decline in consumer confidence will result in a cautious approach to purchasing new devices. At the same time, the increasing U.S. dollar exchange rate will cause prices to increase, further hampering consumer demand. In the commercial space, some tenders are likely to be postponed and financial issues may arise in the channel, particularly on the distributor side."

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International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC

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For the Middle East, Africa, and Turkey region, IDC retains a coordinated network of offices in Riyadh, Nairobi, Lagos, Johannesburg, Cairo, and Istanbul, with a regional center in Dubai. Our coverage couples local insight with an international perspective to provide a comprehensive understanding of markets in these dynamic regions. Our market intelligence services are unparalleled in depth, consistency, scope, and accuracy. IDC Middle East, Africa, and Turkey currently fields over 130 analysts, consultants, and conference associates across the region. To learn more about IDC MEA, please visit www.idc-cema.com. You can follow IDC MEA on Twitter at @IDCMEA.

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