| Computer Hardware - Market Report | | | | strong inroads into small- and medium-sized |
| | | | | enterprises (SMEs). In 2009, however, the market |
| The UK computer hardware market was worth | | | | for servers collapsed as enterprise customers slashed |
| £12.81bn at end-user prices in 2008, a rise of 4.2% | | | | IT budgets to reduce costs. |
| over 2007 and its highest level of output since 2000. | | | | |
| However, the effects of the recession in 2009 led to | | | | Peripherals/add-ons include printers, networking |
| a fall of 8.2% in sales to £11.77bn. Personal | | | | equipment and storage devices. Multi-functional |
| computers (PCs) and servers in particular averaged a | | | | devices (MFDs) continue to be a prime seller in |
| higher annual growth over the period between 2005 | | | | consumer markets, replacing printer sales, but the |
| and 2008, whereas peripherals and add-ons declined | | | | overall sector, together with monitors, has been in |
| in total value sales. The economic downturn in 2009 | | | | decline since 2005. Sales of networking equipment |
| nullified the gains made since 2005 in the total | | | | were moderate up to the recession, while other IT |
| computer hardware sector, leading to a negative | | | | equipment experienced growth over the period. |
| growth of 3.3% over the period. ( ) | | | | |
| | | | | Prices have fallen significantly across the board for |
| Computer hardware, as defined in this Market | | | | computer hardware and manufacturers were under |
| Report, comprises PCs, servers and peripherals | | | | pressure to maintain margins in the face of declining |
| add-ons. The better performance of PCs over the | | | | sales in 2009. Some mergers among global suppliers |
| period, particularly in the consumer market, is | | | | have helped to shore up ailing businesses and prepare |
| attributed to sales of portables and particularly | | | | the merged companies for growth in key sectors. |
| netbooks in the past year. Mobile computing is | | | | |
| continuing to drive netbook sales. Desktop computers | | | | Business customers appear to have taken a |
| are in decline with more portables now being sold | | | | considered approach to IT capital expenditure in the |
| than desktops. | | | | latter part of 2009 and computer hardware |
| | | | | manufacturers were confident the industry had |
| The success of server sales prior to the recession | | | | turned the corner on the recession. They are |
| was based on the broad attraction of cheaper, more | | | | expecting a rebound in sales in 2010 and full recovery |
| powerful and flexible blade servers, which have made | | | | by 2011 with positive prospects for growth to 2014. |