Gadget sales defy Covid-19 to increase 25pc this year

What you need to know:

  • Increased use of telecommuting for work, education, and leisure has led to a surge in demand for electronic products, which has strained both global manufacturing supply chains and upstream mineral stocks and resources.
  • According to the latest data from Salute iWorld, East Africa’s largest Apple reseller, the sale of high-end gadgets went up by 25 percent in 2021 in East Africa compared to the previous year.
  • Tablets topped sales in the period followed by laptops which were used remotely as the government urged citizens to stay at home to avoid further spread of coronavirus.

The Covid-19 pandemic and the ensuing lockdowns have drastically altered the way we do things, pushing up the adoption of various forms of technology.

Increased use of telecommuting for work, education, and leisure has led to a surge in demand for electronic products, which has strained both global manufacturing supply chains and upstream mineral stocks and resources.

According to the latest data from Salute iWorld, East Africa’s largest Apple reseller, the sale of high-end gadgets went up by 25 percent in 2021 in East Africa compared to the previous year as people adopted remote working following the arrival of the pandemic.

Tablets topped sales in the period followed by laptops which were used remotely as the government urged citizens to stay at home to avoid further spread of coronavirus.

Michelle Abuya, senior business manager, Salute Holdings Group, said the basket value grew 10 percent, especially driven by work from home measures and the need for IT solutions during the pandemic. Students were also studying from home and needed gadgets.

According to the report, Kenya is leading the East African market in demand for high-end IT products, followed by Uganda and Tanzania respectively.

The rise has also been attributed to the presence of expatriates as the country is a hub for multiple international organisations.

“Nairobi has the most developed tech scene in East Africa rivalling hubs like Cape Town, Lagos and Cairo,” said Ms Abuya.

Going forward, the demand for high-end gadgets is expected to grow due to the increasing middle class and the demand for remote working as companies adopt a hybrid work model.

“Some companies might allow every employee the flexibility to work on-site and remotely part of the week. Other companies might have employees working either full-time remote or full-time on-site. And others might allow a combo of the two,” she added.

She said that some of the new ripe markets for the penetration of IT products include South Sudan and Congo as demand continues to increase.

“With increasing demand in these markets, plans are already underway to set up shop in both Juba and Kinshasa in 2022,” she revealed.

Globally, laptop shipment went up by 26 percent in 2020, according to GSMArena statistics with revenue growing to $140.3 billion up $4.6 billion year on year.

“This year the revenue is expected to grow again, reaching $142.1 billion. The US will remain the largest market and will account for around $36.1 billion in revenue, followed by China ($19.6 billion) and Japan ($9.8 billion),” GSMArena says.

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