Computer retailers in Egypt are reporting a decline in computer sales in 2015, a claim backed up by a study from the International Data Corporation, with purchasing power and currency issues to blame.
Maged Farouk, the head of Comec Computer Company, says computer sales declined between 20% and 30% during the third quarter (Q3) of 2015. Farouk attributed this trend to the decline in Egypt’s economic situation and the lower purchasing power of Egyptian consumers.
The dollar shortage crisis and its increase in value against the Egyptian pound had caused the decline in the number of imported appliances, which reflected on sales and caused a decline in the profitability of companies operating in the field, he said.
Meanwhile, Mohamed Salem, CEO of Sisco computer company, said that computer sales declined by 30%, attributing this to several reasons.
He pointed to the impact of the dollar crisis on prices of essential consumer products, which caused consumers to reorganise their priorities. He said this in turn made Egyptian consumers reluctant to buy computers because of their limited financial liquidity.
Osama Fawaz, the head of ITG computer company, said sales fell significantly during Q3 of 2015, despite the start of the academic year in that period, which normally has a positive impact on sales.
Fawaz estimated the percentage of sales in his company had declined by 20% compared to the same period in 2014, with the consequence that relations with importing companies had suffered.
He said a large number of computer retail outlets, such as the Al-Bostan and Souq Al-Asr malls, have been affected dramatically and some outlets had to close as a result.
A recent report from the International Data Corporation showed a decline in sales of personal computers and laptops in Egypt. A 32.4% decline in shipments of imported computers was reported during Q2 of 2015, compared to the same period in 2014.
The decline in the tablet market was lower, falling by 6.1% during the same period. The decline in both private computers and tablets in Egypt began in early 2015, with personal computer shipments estimated at 116,000 units compared to 166,000 tablets in Q2 of 2015.
The decline in the value of the Egyptian pound against the dollar and the regulations of the Central Bank of Egypt on dollar deposits affected the flow of shipments, according to the report.
Personal computers will continue to decline throughout 2015, with the IDC expecting a decline of 173% for the whole year compared to 2014.
DELL topped market sales during Q2 of 2015 with a share of 23.5%, achieving strong growth compared to Q1 of 2015. Its share increased by 8.7%, putting DELL in third place in the market, increasing its market share at the expense of HP.
HP’s ranking fell to third place in light of the decline in its market share from 25.2% in Q1 of 2015 to 12.4% in Q2 of the same year. LENOVO maintained its status in second place with a market share of 20.6%.