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The Brazilian PC market had its worst quarter so far this year in Q3, with a 35% drop in sales compared with the same quarter of 2015, according to consultancy IDC's Brazil PCs Tracker report.
Between July and September, some 1.05mn desktop and laptop computers were sold, the consultancy said. Aside from the year-on-year drop, the result was also 11% down on the second quarter, interrupting what had been seen a potential market recovery in Q2, as sales had risen on a sequential basis.
According to IDC, 373,000 desktops (down 39% year-on-year) and 674,000 laptops (down 32%) were sold in Q3. Some 366,000 went to the corporate market and 681,000 to end consumers, year-on-year decreases of 26% and 38%, respectively.
The consultancy said the main factors behind the drop were "cannibalization" due to competition from smartphones and low purchases from companies and from the public sector, mainly because of the election process in October.
"It is increasingly common for consumers to prefer a cell phone with a robust configuration and good navigation quality to a computer," said IDC analyst Pdro Hagge.
IDC expected better results for the quarter, with retailers increasing stocks ahead of the Black Friday sales event and Christmas coming up, but figures fell short of expectations, probably because channels and distributors had full stocks.
The consultancy does not publicly reveal market share statistics, as it only provides this data to companies who are its clients. However, in a meeting with the press this week, the president of Dell EMC for Brazil, Luis Gonçalves, said the company has been gaining market share in PCs in Brazil in every quarter so far this year, although he did not give any specific figures.
According to IDC's global figures, reported by consultancy Teleco, Dell had a 16% market share in Q2, trailing Lenovo (21.2%) and HP (20.8%).
In its previous report, IDC said it expected computer sales in Brazil to reach 4.6mn for full-year 2016, down 31% compared to 2015. For 2017, estimates were that sales would grow 5%.