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Channel PC revenues rise with selling prices

Revenues from sales of business-targeted PCs through Western Europe’s largest distributors were up in Q4 2017 despite a drop in volume, according to data published by CONTEXT, the European IT market research company.

Commercial-PC revenues increased by +6% year-on-year in the final quarter of 2017 while unit sales declined by -6%. Revenue growth was driven by a continuous year-on-year rise in distributors’ average sell prices (ASPs), which was able to offset the effects of lower volume. The ASP of commercial PCs in the quarter was €646, +12% higher than in the previous year.

PC ASPs have been on the rise since the end of 2016 as a result of exchange-rate fluctuations, changes in component costs and a beneficial increase in demand for higher-priced products. In Q4 2017, as in earlier quarters of the year, there was a significant contribution from the demand for higher-priced products as commercial customers continued to focus on improved quality, performance and mobility. This was also noticeable in the breakdown of unit sales: most volume growth in the segment came from the high end of the market with, for example, a +10% increase in sales of ultra-slim portables and a +9% rise in those of notebook workstations.

“Looking forward, PC pricing and revenues in the commercial segment are expected to continue to benefit from the shift in demand to higher-end products as users maintain their focus on high quality, high performance and, often, high portability”, said Marie-Christine Pygott, senior analyst at CONTEXT.

                        Year-on-year revenue growth business-targeted PCs

Country Q4-17  

Germany       9.8%    

United Kingdom 13.2%  

Italy      -2.2%   

France  5.1%    

Spain    4.9%    

Switzerland    7.6%    

Netherlands    9.1%    

Sweden     -4.8%   

Poland  13.9%