Another Holiday season has come to an end and based on The NPD Group’s sales results, the past 6 weeks for the IT Hardware market did very well. Across the consumer IT industry the majority of categories delivered positive revenue results, which has not been seen for quite some time. Standing on top is the Notebook market which, during holiday, I would say exceeded expectations with volume growth at +9% and revenue results at +20%. I am not surprised by the revenue results as we have been tracking the Premium Price/Performance market throughout the year and Canadians continue to embrace these higher performing Notebooks – and certainly seem prepared to pay for that higher performance! Premium Notebooks, priced above $800 experienced revenue growth of 29% during Holiday.
For those who wished to find a Premium Notebook under their tree they were not disappointed. Over 63% of every dollar spent for a Notebook during Holiday 2016 was spent on a Notebook priced above $800. Despite the increased focus on Black Friday and tremendous deals being offered throughout the holiday, Canadian consumers have shown a desire to have Premium Notebooks to address their computing needs. In fact it is the Ultra-Premium market, $1,200 and above, that delivered the strongest performance with volume sales up 24% and revenue results almost 50% stronger than Holiday 2015.
For the industry, what I see as a very encouraging sign is that 10 of the top 11 vendors in the market all experienced an increase in both volume and revenue results in this Premium market. A fantastic way to end 2016 and hoping that as we look towards 2017 that this industry embraces these strong Premium results, during a time typically driven by low-end sales, and uses this as a springboard for 2017. Let’s hope for continued focus on Premium Notebook product lines to meet the needs of what Canadians are demanding.