World Wide Worx | Business Technology Research South Africa

Pc user base in SA reaches 5 million

The number of Personal Computers in use in South Africa will pass the 5-million mark for the first time this year, according to a new study released today.“PC Users in South Africa 2006”, a study by World Wide Worx of the installed base of computers in South Africa, shows that the 4,5-million mark was reached at the end of 2005, and it is expected to grow by 17% to 5.3-million by the end of 2006.

Conducted by Kirsty Laschinger and Arthur Goldstuck, the study moved beyond conventional counting of computer sales to establish how long PCs, laptops and servers remain in use once they are in the market, and how many are in active use. This has for the first time provided a clear picture of the size of the PC user base in South Africa.

“We found that PCs have a life span ranging 3 to 6 years, while laptop computers tend to be used for only up to three years,” says Laschinger, who interviewed most of the country’s major PC manufacturers and distributors for the project. “It was an eye-opener how many vendors of computers expect all users to replace their PCs every two to three years, when the reality is many users ‘sweating their assets’ to get maximum value from the purchase.”

The result is that booming sales in PCs means not only more people than ever before using new PCs, but also that PCs already in the field will remain in use for a longer period, further boosting the user base. However, this trend may change once laptop computers overtake desktop PCs in popularity – a real possibility in the coming year or two.

“Laptop computers cannot be upgraded as easily or as cheaply as desktop PCs, so they have a shorter useful life,” says Goldstuck, MD of World Wide Worx. “You can upgrade a PC bought more than five years ago to accommodate current software, but it’s unlikely you could do that with most laptops. The result is that old laptops are more likely to be discarded than passed on, while old PCs are more likely to have a second life once the user upgrades.”

The net result is that booming laptop sales will not have the same cumulative effect on the total user base as do PC sales. Nevertheless, growth will continue, but at a slower pace, in subsequent years.

Factors that will drive this growth include:

• Continued strong economic growth;
• The emergence of the black middle class;
• Improved education levels, including computer literacy;
• The evolution of the distribution channel;
• Improved affordability of PCs, both as a result of cheaper product and new financing options;
• Convergence of voice and data;
• Technology improvements;
• Demand for more server/ storage capability to meet higher levels of corporate governance requirements.

For more information on the research, please contact: * Arthur Goldstuck by e-mail on arthurg@internet.org.za, by phone on (011) 7827003 or on his cell phone on 083 3264345

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