The future looks bright for the Levant PC market despite political instability and economic sanctions, a report said.

Levant - the three-country region is made up of Jordan, Lebanon, and Syria.

IDC expects shipments to soar 22 per cent year-on-year to reach more than 282,000 units in 2007, with surging demand for notebooks pushing year-on-year revenue growth to an impressive 23.7 per cent.

Internet expansion, a growing awareness of the benefits of mobility, and increased IT investments by the region's key sectors (telecom, education, government, and banking) will see the total PC market expand at an average annual rate of 19 per cent in volume through 2011.

'The ongoing political and economic instability in the Levant region makes the PC and general IT markets unpredictable,' says IDC Middle East and Africa Research Analyst Rami Barbarawi. 'Nevertheless, untapped demand should keep the market going; though it may be uneven for a while, particularly in Syria and Lebanon.'

Desktops still account for the largest share of PC shipments in the Levant.

According to IDC, desktops represented 71.5 per cent of total PC shipments in 2006, while notebooks accounted for 26.3 per cent. Notebook shipments will, however, rise 1.7 times faster than desktop shipments over the next five years.

The x86 server market is also expected to perform well. Although accounting for just 2.2 per cent of shipments in 2006, the x86 segment is forecast to expand at an annual average of more than 20 per cent in volume through 2011.

According to IDC, the Levant PC market's growth is being largely driven by the Jordanian market, which is set to expand a healthy 25.1 per cent in volume year-on-year to reach nearly 120,000 PCs in 2007.

Overall, the Jordan PC market's expansion will be fueled by a strong uptake within the notebook segment, mainly by the fast-growing SME (small and medium-sized enterprise) and SOHO (small office and home office) segments. Furthermore, large desktop and x86 server rollouts are expected to take place within the leading market verticals of government, telecom, and banking during 2007.

The Lebanese market is expected to rebound to some degree in 2007, with year-on-year volume growth expected to reach 17.7 per cent representing more than 92,000 units. This expansion, however, does not reflect the real potential of the market or the demand that exists within it, due to the ongoing political and economic unrest in the country.

With US-imposed economic sanctions on Syria set to continue, IDC expects the country's PC market to experience only moderate growth in 2007. The market will expand 23.9 per cent in volume year-on-year to reach over 70,000 units. Growth will continue to be driven mainly by Far Eastern and domestic players, as they take advantage of the economic constraints faced by international vendors. – TradeArabia News Service