Market share for desktop computers is struggling to grow as consumers are turning away and opting for less bulky and more fashionable laptops.

Gitex 2005


At present, the market share for desktops in the Middle East is stagnant.

Demand share for computers was divided in two: laptops and desktops, which was 60 per cent and 40 per cent respectively in 2004, said Jacob Varghese, regional sales manager for Acer. In 2005, demand for desktops fell down to 30 per cent. "Even though the percentage fell, the overall market grew, so we still sold more desktops than last year," he said.

The main advantage, according to retailers at Gitex agree that desktop computers have over laptops is that it can be upgraded easily, is more expandable and has greater durability.

The computer industry has positioned itself so that companies attend to every aspect of the market. Manufacturers who cater to end users have repositioned themselves from relying on desktops as a source of revenue, to focus on laptops instead, in response to the shifting trend.

General Manager Abdul Malik Baghdadi of Al Yousef Group explained that their company caters mainly to medium businesses, who heavily rely on desktops for the workforce. "In 2004, we sold 2,100 machines. In 2005 so far we sold approximately 1,600 pieces in the second quarter and 1,100 desktops in the third quarter, and expect sales to rise further," he said.

Concerning the fluctuation of the US dollar and the Euro, UAE manufacturers based in Asia and Europe ensure that prices are fixed and do not change in relation. "We manufacture the computers in East Asia, so original costs pretty low. Even though we are headquartered in Europe, it does not matter. Our prices are fixed, and we keep it that way," said Varghese.

Nidal Gharzeddine, Sales Manager, Emirates Computers, said that if manufacturers originally base their products on the dollar, they will not experience any effect on their cost of production or on prices.

GITEX SHOPPER
Prices expected to fall further today

  • Today will be the final day to look for bargains and value-for-money deals at Gitex Shopper at the Airport Expo, organisers Dubai World Trade Centre said yesterday.
  • Prices plunge further on the last day, as exhibitors are eager to clear stocks.
  • Participating exhibitors at Gitex Shopper have reported between 30 to 40 per cent increase in sales during the first few days of the show.
  • The annual event has been receiving record crowds, with a double-digit jump in visitor numbers to 72,000 by the fifth day of the show.