Pakistan PC/Server Market Approaches Half-Million Mark, Springboard Research Finds

Market Overcomes October Earthquake to Grow 16.6% in 2005

Islamabad, Pakistan and Singapore - April 20, 2006
Aided by growing IT awareness in the country and increased focus from multinational IT vendors, Pakistan PC shipments grew 16.6% annually in 2005 to reach just under the half-million mark with 494,000 unit shipments. Additional market accelerators include strong economic growth, the government’s drive to privatize the economy and efforts to develop the ICT sector.
Although the earthquake in October held shipments back marginally in Q4 due to delayed government buying and general economic disruption, it is not expected to impact the market materially in 2006 and beyond. Similarly, although social unrest and a degree of political instability are risks for the market, they are not expected to derail the market’s strong overall momentum over the next several years.
“Due to political and social disruptions as well as general perception challenges, the Pakistan market has traditionally been neglected by international IT vendors; however, the market’s explosive growth over the past several years has led it to a scale that is drawing increased attention,” noted Dane Anderson, Vice President, Springboard Research. “It is not an exaggeration to call Pakistan one of the most promising and dynamic PC markets in the world.”
The Pakistan PC market continues to be highly price-conscious, and remains dominated by locally assembled machines, which hold over 75% of total shipment market share. Among international players, HP leads the market with a unit market share of 9.2%. HP is followed by Lenovo/IBM and Dell. Local brands Inbox and Raffles are also major players, and are increasingly being viewed as formidable competition for international giants in Pakistan.
Desktops, which represent the largest portion of the market, registered shipments in excess of 469,200 in 2005. Amongst all the product sectors, the portable market led growth in 2005 with 21.3% expansion, followed by X86 servers and desktops. Portable PCs are expected to remain a particularly hot market segment throughout the forecast period as prices fall and the need for mobility rises. The position of notebook PCs as status symbols will also play a secondary role in driving sales.
From a usage perspective, the public sector and NGOs are currently the dominant segment of the market. However, large corporations - particularly in the finance and telecommunications sectors - are also key customers driving market growth. Although Small and Medium Businesses (SMBs) represent a large share of the country’s total number of companies, they do not represent a commensurate share of the PC market. In total, SMBs represented 21% of total 2005 PC shipments in the country.
“The SMB market represents a notable portion of shipments in Pakistan, but it is receiving secondary focus from IT vendors due to the substantial opportunities in the public and large enterprise sectors,” noted Rehan Ghazi, Springboard’s Pakistan-based PC Market Analyst.
In spite of social and political risks, Springboard expects PC market growth to rebound to 24.7% in 2006 driven by a release of pent-up demand from earthquake-related delays in Q4, strong economic growth and IT vendor investments in sales and marketing activities. Social and political unrest remain overhangs of concern, but they have been overcome for the past several years which is expected to continue.
About Asia Emerging Countries Tracker
Asia Emerging Countries Tracker is a Springboard Research service that tracks PC/Server market developments in Bangladesh, Brunei, Cambodia, Sri Lanka and Pakistan on a quarterly basis. The methodology employed for this service leverages interviews with IT resellers, vendors, component suppliers and end-users at the local and regional level. For more information on this research program please contact:
About Springboard Research
Springboard Research is a leading innovator in the IT Market Research industry. We leverage a next generation research model that harnesses new opportunities to streamline operations, automate research processes, and deliver insights in more interactive formats. Springboard’s cutting-edge research model leverages offshore research resources, the Internet, and an increased use of technology as engines of innovation to deliver unique research value. Our growing client base consists of leading IT firms in the hardware, software, networking, and services sectors.
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Chris Perrine
Vice President - Business Development
Springboard Research
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Dane Anderson
Vice President - Research
Springboard Research
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