Express companies hit by latest consumer technology trend

Specialist technology consultancy Gartner, Inc. has revealed that worldwide PC shipments totaled 93.5m units in the fourth quarter of 2010, a 3.1% increase from the fourth quarter of 2009. For all 2010, the results indicate the PC market recovered from the recession, as it returned to double-digit growth, compared to low single-digit growth in 2009.

The market was driven by demand from businesses replacing equipment after delaying purchasing decisions during the recession. However PC sales in the consumer sector were affected by intense competition from media tablets, such as the iPad.

PC shipments in EMEA totaled 32m in the fourth quarter of 2010, a 6.2% increase from the fourth quarter of 2009. Gartner said that the consumer market in Western Europe remained weak throughout the quarter. It indicated that consumer spend shifted away from PCs to other consumer electronic devices including media tablets, gaming machines and e-readers.

In Asia/Pacific, PC shipments reached 27.9m units, a 4.1% increase from the fourth quarter of 2009. Fourth quarter PC shipments were primarily affected by the decrease of shipments into the consumer market. PC shipments in Japan grew 3% in the fourth quarter of 2010, as shipments reached 3.8m units.

The PC market in Latin America grew 15% in the fourth quarter of 2010 as shipments totaled 8.9m units. Mobile PC shipments increased 17.1% in the quarter, and desk-based PC shipments grew approximately 12.6%.

On one hand the overall market growth is good news especially for express parcels operators and air cargo operators which tend to benefit most from expansion in high value sectors such as personal computers. However the shift from higher volume products such as 'box' computers to media tablets will have an impact on express companies' revenues. There will be fewer shipments of monitors, keyboards and other computer peripheries ? at least in the consumer rather than business sectors. It is also easier for consumers to purchase media tablets direct from retailers, reversing the online direct-to-consumer trend which has dominated for the past fifteen years.