Growing demand for used PCs: Gartner

BANGALORE: Demand for used PCs in emerging regions is robust and is exceeding supply in some markets, according to Gartner, Inc.

For every two new PCs shipped to mature markets in 2005, one secondary market PC will be resold.

Gartner defines a secondary-market PC as a PC that has been used for more than three months by its primary/initial user and then made available to another user for secondary use. Such PCs mainly come from supplier nations such as the United States, Japan and Western Europe, into demand regions such as Eastern Europe, Middle East and Africa (MEA), Latin America and Asia/Pacific.

Currently, one in 12 PCs in use worldwide is secondary PCs. In 2004, 152.5 million secondary PCs were shipped. Gartner analysts estimate 36 percent of secondary PCs or 55 million PCs, were dedicated to reuse. These secondary machines will provide a strong base from which the used PC market will grow.

"The demand for secondary PCs continues to exceed supply, providing opportunistic but potentially lucrative opportunities for specialized intermediaries and resellers or vendors looking to resell used PCs," said Meike Escherich, principal analyst for Gartner's client platforms research group. "The demand for secondary PCs in emerging regions, such as Eastern Europe, Middle East and Africa, Latin America and parts of Asia/Pacific, is likely to grow as pressure increases on developing countries to accept used PCs as a viable technology solution. Unlike mature markets, operating system intellectual property rights are rarely respected allowing lower resale values for secondary machines."

Gartner analysts said the secondary PC market will continue to grow during the next several years in the home and professional markets, sparked by replacement activity, longer system life, new-seat opportunities in low-cost regions.

"With recycling legislation becoming more common, organizations will have a greater incentive to sell their used PCs," Escherich said. "PC performance is extending the useful life of PCs. At the same time, users are opting to extend the life spans of installed PCs. This may increase used PC availability.