African Market Sees Value Growth

africa-2Despite a year-on-year decline in shipments, the African hardcopy peripherals market (HCP) overall reported a steady growth in value in the third quarter of 2016 (Q3 2016).

According to ICT research and advisory services firm International Data Corporation (IDC), shipments of the market declined 6.5% to total 470,308 units in Q3, due to the tough economic conditions. However, value of the overall market increased steadily by 4.7% over the same period to reach $196.09 million, spurred by the strong performance of the inkjet segment.

Laser shipments declined 4.9% year on year (YOY) in Q3 to 251,247 units, while value of these shipments increased 3.2% over the same period to reach $166.36 million. In particular, A3 laser segment generated most of the value increase in Africa, thanks to ongoing demand from both government and private sectors.

The 70–90ppm and 91ppm+ speed segments also contributed significantly to the overall value increase in the whole market, although they suffered unit decrease in South Africa.

As newer and more efficient technologies are winning over more users, the serial dot matrix (SDM) market fell significantly in Q3, with shipments down 27.0% YOY to 9,973 units and value fell 39.8% to $4.7 million.

“While major markets like South Africa and Nigeria suffered large declines in the number of units shipped as households reprioritize their spending on more basic needs, Algeria and Tunisia were able to offset this with strong gains in the color inkjet space,” said Roberto Alunni, research manager for imaging, printing and document solutions at IDC Middle East, Africa, and Turkey.

“While entry-level devices (less than $100) account for the majority of sales in unit terms, the midrange price band ($100–$300) – which primarily serves demand from the SOHO and SMB segments – accounts for more than half of the inkjet market’s total value. ” He added.

HP Inc continued to dominate the African inkjet market in Q3 2016 with more than 60.0% share in both units and value.

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