PC Retail

Based on year-to-date sales (Jan-Apr), IT products have continued to boom. The top five growth products are digital photo frames, laptops, storage/HDDs, communication cards and mice. Between them, sales have increased by 45 per cent compared to the same time last year.

PCs maintain their overall number one position in terms of volume in the market. Sales continue to be driven by the mobile sector which accounts for 81 per cent of total PCs sold so far this year; mobile PC sales in terms of volume have increased 74 per cent so far in 2008 compared to 2007.

Desktop sales remain in decline year-on-year; 19 per cent lower than last year. However, in the last two months the decline has slowed down, putting desktops in the strongest position – based on unit decline – since summer 2007.

Average prices increased slightly in April 2008 for both desktops and laptops: a further indication that the IT retail sector is not yet struggling. Two factors are responsible for the increase of desktop prices: firstly, the increased sales of high specification models, incorporating technology such as the Quad-Core processors, which command a higher average price, and secondly the increased sales of the 'all-in-one' entertainment feature desktops, again yielding a much higher price than a standard desktop.

Communication cards, or 'dongles' as they are better known, perform well due to the explosion of wireless technologies. There is little value left in this market; however, plenty of units continue to be sold as more users require this technology and hotspots continue to increase.

Laptops continue to incorporate additional features; many now contain built-in webcams, which is undoubtedly going to affect the webcam market.

In summary, it sounds to me as if the credit crunch has not yet started to affect the IT retail market; but rather our hunger for IT products and the attractive deals being offered have ensured that the UK consumer continues to purchase these products.

The next threat appears to be the all-encompassing laptop containing more and more technologies, and thus the potential impact this could have on other peripheral IT markets.