Brazilian PC market continues to grow

Price reduction strategies from manufacturers and retailers helped boost sales, says IDC
Written by Angelica Mari, Contributing Writer

The PC market in Brazil continues to grow as a result of price reduction strategies adopted by manufacturers and retailers to respond to a sales slowdown last year, according to recent research.

Companies have been adjusting prices to match buyer behavior in the recession since the end of last year, says analyst firm IDC. This strategy appears to be bearing fruit: between January and March, some 1,34 million PCs were sold, up 21 percent on the same period last year.

PC sales during the three months of the year generated 3 billion reais ($788,000) 22,6 percent more than the first quarter of 2017, when sales totaled 2,51 billion reais ($262,000).

During the period, notebooks accounted for 60,3 percent of all sales with the remainder being desktop computers. Corporates bought 24 percent more than the same quarter last year while the consumer segment saw a 19,4 percent increase in sales.

It is not unusual for PC sales to slow down in the state of the year, according to IDC Brazil analyst Wellington La Falce. But there was no significant increase of the dollar in relation to the real in Q1, so companies managed to keep prices down and maintain the positive performance, the analyst points out.

For this year, La Falce predicts 5 percent growth overall in relation to 2017.

"Manufacturers and retailers should act to prompt consumers to anticipate their purchases during this year, since there are too many uncertainties in relation to 2019 that could impact on consumers' buying power," he adds.

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