European notebook revenues rise as prices lift sales

European notebook revenues rose 12% year on year in the first six weeks of the second quarter, according to CONTEXT, as average selling prices increased across the region.

Desktop revenues also grew, though more slowly, rising 2% over the same period, according to market intelligence data. The figures followed a strong first quarter, in which notebook revenues grew 15%, and desktop revenues rose 20% through European distribution.

The early second-quarter data points to a shift in the market. Average selling prices for notebooks rose 11.4% year on year, while desktop prices increased 10.5%.

Unit sales moved in the opposite direction. Notebook volumes fell 3%, and desktop volumes dropped 7%, suggesting revenue growth is increasingly being driven by higher-priced devices rather than rising shipments.

That contrasts with the first quarter, when both units and revenues were boosted by channel stocking ahead of expected price increases. In the latest period, distributors and resellers appear to have worked through some of that inventory while higher prices supported sales values.

"After a strong first quarter where unit and revenue growth was fuelled by channel stocking ahead of anticipated price hikes, the dynamic shifted sharply at the start of Q2," said Marie-Christine Pygott, Senior Analyst at CONTEXT.

"Unit volumes dropped following that period of intense stocking, but revenues continued to climb, albeit at a more moderate pace, driven by a significant rise in average selling prices and a market shift toward higher-end devices," Pygott said.

Apple mix

CONTEXT also highlighted continued demand in Europe for Apple's MacBook Neo line. By April, the model accounted for 33% of Apple notebook sales in the region, matching the MacBook Air's share of the company's notebook mix.

The figures suggest Apple's newer range has quickly gained ground in a premium segment of the market, helping lift overall selling prices. The trend also reflects a broader shift toward higher-priced notebooks even as total unit demand softens.

Channel weight

The data also underlined the distribution's role in business PC sales across Europe. Over the past 12 months, distribution accounted for an average 71% of business PC sales in Italy, compared with 39% in Germany, 38% in the UK and 36% in France.

The country split shows how heavily some markets still rely on distributors to supply commercial buyers. Italy stood out as the most distribution-led market among the four largest countries cited, while Germany, the UK and France showed a more mixed route to market.

For suppliers and channel partners, the figures highlight the continued importance of pricing and product mix in a market where demand is becoming less volume-driven. They also point to the resilience of business-focused distribution at a time when customers continue to value availability, payment terms and delivery speed.

"Distribution remains the critical engine of the European PC market, especially within the business segment where partners continue to rely heavily on broad availability, financing options and fast fulfilment," Pygott said.