European IT revenues jump seven per cent in Q1 with UK leading the way

PRLog (Press Release) – May 6, 2014 – LONDON, U.K. — London – Several major European markets led by the UK have seen IT growth make an impressive comeback in Q1 2014, according to the latest figures from analyst CONTEXT.

The market watcher compiled figures from across the region from its large panel of pan-European distributors. It claimed total IT revenues through distribution stood at €11.6bn, up 7% from the €10.8bn recoded the same time last year.

There was growth in all months during the quarter, with January up +4.8%, February up 5.8% and March booming with a 10.2% increase.

The UK led the way in terms of revenue, as it has done now for the past four quarters, with sales topping €2.5bn.

Four sectors moved into year-on-year growth in the UK in Q1 apart from servers (-7.2%), with desktop computing (32.5%), printing consumables (22.4%) and computing components (21.2%) the best performing.

“Desktop sales in the UK, like in other Western European countries, benefited strongly from late orders following the end-of-XP support and saw revenues up by almost one third in the quarter compared to last year”, said Marie-Christine Pygott, senior analyst at CONTEXT.

However, CONTEXT highlighted the 10.7% growth in the Software & Licenses category as particularly important, given that it comprises 17% of UK revenues as reported by the analyst’s panel.

By contrast, in Germany five sectors still languish in zero or negative growth: mobile computing (-4.9%), disk storage (0%), printing consumables (-6.1%), networking systems (-13%) and servers (-15.3%).

The Telecoms sector was the main driver of overall IT growth there with a 55.7% increase in revenues year-on-year.

Elsewhere, Italy performed well, recording growth in all but one sector (networking systems, -2.5%) for the first time in over a year.

In Spain, most IT sectors are back on track and the 3.3% growth in mobile computing is significant given the sector accounts for 29% of all revenues there, CONTEXT said.

It wasn’t all positive news across Europe, however, with only Poland and Sweden showing growth of the other countries analysed.

That said, there are more overall revenue growth sectors (11) than there were in Q1 2013 (7), with telecoms (72.8%) desktop computing (11.9%) and accessories (11.3%) recording the strongest performance.

— ends —

Revenue growth by country Q1/14

Total 7.0%
Rest of W Europe 5.4%
Poland 3.2%
Switzerland -1.0%
Sweden 2.5%
Denmark -0.3%
Austria -0.1%
Czech Republic -4.5%
Finland -5.8%
Norway -4.9%

About CONTEXT
Headquartered in London with over 140 staff in 12 countries, CONTEXT specialises in tracking technology sales and pricing across the globe. CONTEXT captures real time data from a wide range of channel sources including access to Global Technology Distribution Council (GTDC) members and the CONTEXT European Retail Panel (R2B), tracking over US$3bn sales across Europe on a weekly basis. CONTEXT reports provide the most accurate channel market information available today across a range of business and consumer technology products, enabling customers to assess their business operations in the light of actual sell out figures, and make business critical decisions based on hard data. Follow us on Twitter: @contextworld.com or visit our website: http://www.contextworld.com

Media contacts
Funda Cizgenakad
Funda@contextworld.com
Tel: +44 7876 616 246

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