July 2010
After a difficult year, following the global financial crisis which saw consumer and business spending falling, data for the first six months of 2010 has revealed that the IT market is now in 3.2% value growth in comparison to the same period last year. Data from Q1 and Q2 has delivered some interesting insight into the performance of the IT market and as to where the market might be heading as we move into the second half of the year.
The Netbooks product category has been a major driving force behind the IT market for quite some time now and accounted for 22% of the total sales in the UK mobile computing market in 2009. It is also one of the fastest growing product categories in the IT market growing at an average rate in excess of 150% over the past two years.
Notebooks, their larger rival, on the other hand have experienced turbulent times with sales both in volume and value terms down by 5% on average in 2009. This year however the product category started to make a comeback in both volume and value terms hinting at a possible shift in buying patterns in the market. The trend of declining Netbook sales in Q1 continued into the second quarter of the year which has resulted in the recovery of the Notebooks product category.
The month of June saw sales of Notebooks grow by 7% in volume and 16% in value, higher than those of Netbooks for the first time in almost two years, highlighting a possible change in the dynamics of the mobile computing market.
As the market becomes more competitive and with increasing interest in the tablet market from both the consumer and vendor side of life, the mobile computing sector is continuing to show signs of steady growth and can be a key factor in pushing the market into a reasonable position by the end of the year.
Written by Mehryar Hamid
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