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Nigeria’s PC Market Drops To Its Lowest Since 2008

According to the recent figures collated by the International Data Corporation (IDC), there is an indication that the amount of PC shipments imported into the nation dropped to 57.1% year-on-year in 2016 bringing it to a total of 156,511 units.

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The IDC stated that the drop to 57.1% means the PC market has fallen to its lowest levels since tracking  the market in the first quarter of 2008 by the research and analysis firm. Reasons that could have attributed to this decline include unstable exchange rates and poor economic state. The PC market has been on the decrease since 2013.

A senior research analyst at IDC West Africa, Babatunde Afolayan stated that the decrease in the value of the naira against the dollar played a vital role.

Afolayan expressed the poor conversion rate effect on the PC market by saying, “To make matters worse, the government excluded IT products from accessing foreign currencies at the interbank rate, pushing channel partners to obtain foreign currencies from the unofficial market, where rates are typically 40–50% higher.”

“Both commercial and consumer end users have been prolonging their PC lifecycles beyond what is generally considered normal,” he said. “And in cases where new purchases are being made, commercial end users are typically opting for cheaper models while consumers are increasingly opting for refurbished products. An additional challenge is that channel partners are no longer stocking units to meet future demand; PCs are now ordered on a need-to-supply basis, and only after orders have been fully paid.”

Babatunde pointed the fact that poor economic occurrences have reduced the end users purchasing power which has resulted in the low PC demand.

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“At the same time, the volume of gray market imports is steadily increasing. One of the main reasons is the lower price points at which resellers can purchase products from gray market sources, giving them better profit margins than official channels,” added Afolayan.

According to IDC, the importation of PCs that have been used and redecorated mostly from the U.K, –which we call the London Used- China and UAE have proved to be a major setback also for official channels. Shipments of these refurbished PCs have overtaken the amount of official shipments.

About Adekunle Adepoju'
Writer. Asides being a writer, I'm incredible!

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