UK PC sales dropped by less than one per cent in the second quarter of 2002, according to IDC. But the market is unlikely to improve until the end of the year.
The analyst explained that corporate spending is still under pressure, and remains limited to essential hardware renewals.
But an increased focus by vendors on selling to small and medium sized businesses and the public sector made up for much of the shortfall.
"Consolidation and value assessment of current equipment are, at present, the key concerns among IT managers in the corporate space," said Rita Sfeir, a research analyst at IDC.
"The current climate is such that businesses are reluctant to invest in IT products or services without justification that they will visibly aid their business."
According to Sfeir, a return to growth is not expected until late 2002 or early 2003.
"Healthier trends are expected to be driven by a rebound in corporate investments and a boost in notebook sales through the advancement of broadband and wireless technology," she explained.
Through its acquisition of Compaq, Hewlett Packard (HP) took the number one position in the UK, with 7.4 per cent year-on-year growth and 22.5 per cent market share.
Aggressive pricing from HP during the quarter, which IDC said was aimed at pushing product changes in the channel, also helped to boost volumes.
Dell dropped one position, declining by 1.3 per cent due to weak corporate investments. NEC CI moved up to third position, recording 2.4 per cent year-on-year growth after boosting sales to corporates and the public sector.
IDC also said that the Intel server market recorded 22.8 per cent year-on-year growth, but that this compared with a very weak quarter last year.
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