Turkey PC Market Gains Momentum Despite Numerous Challenges Facing the Country | About IDC | IDC CEMA

Istanbul – Turkey's PC market totaled 453,400 units in Q3 2016, according to the latest insights from International Data Corporation (IDC). The global ICT research and consulting services firm's Quarterly PC Tracker for Turkey shows that shipments were up 30% on the same period of 2015 and 14.2% on the previous quarter. These figures were up around 20% on previous projections.

The beginning of Q3 2016 saw the continuation of considerable economic and political instability in Turkey, with volatile exchange rates compounding the situation. The failed coup attempt on July 15th was the most significant factor, and this had a notable negative impact on IT initiatives in the country, as well as on the wider business environment. The three-month-long state of emergency declared by government on July 20 was extended for another three months on October 19. Syrian border issues also had a negative impact on the general economic environment. IDC had revised its forecast for Q3 2016 downwards in light of these developments; however, the PC market showed a marked improvement in the latter half of the quarter due to a recovery in demand from both the consumer and commercial segments.

"Weak business sentiment and poor consumer confidence, together with increased financial market volatility, had been expected to dampen demand for PCs," says Ayse Kaptanoglu, a senior research analyst at IDC Turkey. "However, consumers didn't react as anticipated, and instead continued to purchase in line with the traditional back-to-school effect, no doubt spurred by their familiarity with such promotional periods. On the commercial side, election-related spending and government measures to support the economy have contributed to strong consumption growth in the public sector, but this unlikely to be sustained in 2017."

HP led the Turkish PC market in Q3 2016 with 24% share, thanks in large part to its strong presence in the commercial segment. Lenovo ranked second with 22% share owing to a number of large public sector deals and a healthy sell-in targeted towards home users. Asus placed third in the overall market with 16.2% share, but was the leading vendor when looking at the consumer segment in isolation.

"While the better-than-expected results for Q3 2016 led to considerable growth in the market, it is not yet clear how sustainable this performance will be into the coming new year," says Kaptanoglu. "That said, the final quarter of 2016 should be promising due to strong public and private sector spending, as long as the market's leading vendors do not face any component issues and retailers are able to compensate for the upward trend in the U.S. dollar."