Stay-at-home measures power computer sales in Brazil

Sales of computers in Brazil grew 16% year-on-year in the first quarter, reaching 1.47mn units, while sales revenues were up 30.6% to 5.16bn reais (US$980mn), fueled by quarantine and stay-at-home measures, according to research firm IDC.

Of all PC sales between January and March, 71.9% were laptops (up 18.8% year-on-year) and 28.1% desktops (up 9.6%). 

The performance is “very significant”, considering that in the first quarter of 2019 PC sales fell 6.2% year-on-year, said IDC.

The quarantine also boosted the business of systems integrators and Device-as-a-Service subscriptions.

"Companies had to buy or rent equipment to have their employees working from home. At the same time, families needed at least one computer per person to continue to work and study during quarantine," said IDC analyst Rodrigo Pereira.

Sales to the education segment alone grew by 60% in terms of units, followed by 15.4% growth in retail.

According to Pereira, the demand was so high that even large companies, which usually make purchases through distribution channels, went to retailers to obtain the machines they needed to continue business. 

"Since the beginning of the year, manufacturers and channels have been following the evolution of the novel coronavirus around the world, predicted that it would arrive in Brazil and anticipated their business, maintaining prices and stocks," Pereira said. 

With 60% growth compared to the same period of 2019, the education sector surpassed the corporate segment and, according to Pereira, home schooling encouraged the digital transformation of the vertical well ahead of previous expectations.

IDC Brasil expects that the computer market will feel the impacts of the COVID-19 pandemic, currency depreciation and unemployment in Q2 and Q3. 

As a result, IDC's full-year forecast is for a 1% drop in PC sales in the corporate market and a 5% drop in retail sales.