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Sales revenues decline despite market growth
Pricing squeeze keeps turnover low compared with last year although there was growth in unit sales
Revenue
from sales of IT equipment in October 2005 was down compared with the
same month a year ago across Europe, according to the latest figures
from channel analyst Context.
The firm’s SalesWatch research
revealed that revenues declined despite many sectors recording unit
growth in the same timeframe; a sign of the continuing squeeze on
prices, Context said.
In the UK, notebooks continued to prove more
popular than desktops, with sales of notebooks up 21.9 per cent while
sales of desktops fell 16.9 per cent in October. However turnover
declined for both desktops and notebooks by 19 per cent and 2.1 per
cent respectively.
Servers came out on top in the UK with sales up
22.9 per cent and turnover up 11.7 per cent, while across Europe server
sales fell three per cent and turnover dropped 13.4 per cent. However,
the UK printer market saw sales drop 12.6 per cent, while in Europe
printer sales rose 8.5 per cent.
Jason Harcourt, senior analyst at
Context, told CRN: “2005 was a terrible year for the UK printer market.
The first half of 2004 was very strong for laser printers, but since
then it has really tailed off month on month. This could be due to a
general slowdown in the UK economy as spend on printers tends to be the
first thing people cut from their budgets. I’d like to think there will
be a recovery in the printer market this year.”
Kevin Jones,
managing director of printer reseller Printware, said: “Last year was
tough, but I would say it was tough for the overall IT market not just
printers. However, we sold more printers in our core category – colour
business lasers – than last year.”
Leanne Gravil, branch manager at
VAR CBC Computer Systems, said: “We sell more notebooks than anything
else. We sell a lot through the ‘laptops for teachers’ scheme. In the
last 12 months there has been a definite decline in the sales of
desktops.”
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