PC sales are holding up in Europe, says the latest study published by London-based European technology tracking company, Context. On the second quarter 2010, PC sales showed improved revenue growth, thanks to the rise of average selling prices.

"The growth during this quarter was double the rate in Q2 2009, which is encouraging for the rest of 2010," commented Context Senior PC Analyst, Marie-Christine Pygott.

If unit sales of desktops, notebooks and servers grew 10.0% in Q2 2010 compared to Q2 2009, revenues were up 11.9% over the same period, due to the 3% rise in average PC selling prices.

As anticipated a month earlier by Pygott, this was mainly driven by increased sales of higher priced all-in-one consumer PCs and a resurgence in sales of business-oriented notebooks, as well as a decline in value of the euro since the beginning of the year.

The study was based on PC sales by Europe's largest distributors and accounts for half of all PC business in Europe. Country growth was mixed, ranging from a 36.8% increase in unit terms in Germany to a 20% decline in Denmark, and amongst Western Europe's top economies, Italy and the UK both grew 15.6%, France 8.1% and Spain 0.2%.

"PC unit sales growth rate for the first half of 2010 was 13.1%, an improvement over last year's first half growth rate of 9.4%. Despite the weakening euro and the potential effect on prices, the combination of back-to-school sales later in the year, the continuing strength in the small business sector and Windows 7 adoption by businesses should all contribute to keep the momentum going," concluded Pygott.

Desktop and notebook PCs enjoyed similar y-o-y growth rates in Q2 2010 at 9.1% and 9.4% respectively, while netbooks grew 14.1%, showing a continuing decline in growth as sales mature, says the release. And tablet PCs grew 257% as the effect of the May Apple iPad launch filtered through distribution.

www.context.com