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CONTEXT said notebook revenues in Europe rose 16% year on year in September despite a fall in unit sales, pointing to a PC market in which higher prices are offsetting weaker volumes.
Through distribution, notebook unit sales fell 2.8% in September even as revenues increased, according to the market intelligence company. Desktops recorded a much steeper decline, with unit sales down almost 39% from the same month a year earlier.
The data shows a widening gap between the two main PC categories. Notebooks continued to generate more revenue despite lower shipment numbers, while desktops posted falling revenues in each month of the third quarter.
By September, desktop revenues were 18.7% below the level recorded a year earlier. Higher average selling prices softened some of the impact, but not enough to offset the decline in volumes.
Notebook trading across the quarter was uneven. In July, revenues rose 25.7%, and volumes increased 9.1%.
That pattern changed in August, when notebook unit sales dropped 13.3%, and revenue growth slowed to 0.6%. September brought a stronger revenue result, although the number of devices sold remained below last year's level.
Price effect
The figures suggest average selling prices are doing much of the work in sustaining notebook revenue. For distributors, retailers and resellers, that means the top line can improve even as demand remains subdued.
Marie-Christine Pygott, vice president analyst at CONTEXT, said the headline revenue growth did not reflect a full recovery in the market.
"Revenue growth tells only part of the story. More money is being spent on notebooks, but fewer devices are being sold. For retailers and resellers, higher-value sales are helping the top line, but with higher costs eating away at margins, the channel still needs a recovery in demand to see a broader impact on profitability," Pygott said.
Her comments suggest stronger selling prices may be supporting turnover without necessarily improving earnings across the sales channel. The gap between revenue and unit demand also indicates that buyers remain cautious even as they spend more on selected products.
AI mix
AI-capable computers made up a large share of PC spending during the third quarter. Such devices accounted for 65% of notebook revenues and 53.5% of desktop revenues, measured by value rather than by the number of systems sold.
In notebooks, the price difference between AI-capable and non-AI systems was marked. In September, AI-capable notebook models sold through distribution for an average of about €1,100, compared with about €500 for models without an AI-capable chipset.
CONTEXT said the gap does not reflect a like-for-like comparison of similar hardware. Instead, it reflects product mix: AI chipsets are concentrated in higher-end notebook configurations, while non-AI devices are more commonly found in entry-level systems.
The prices cited are distributor selling prices excluding VAT, rather than retail shelf prices. That distinction matters because it shows the level at which the channel is buying stock, not the final amount paid by consumers or business customers.
Pygott said the growing revenue share of AI-capable systems should not be read as proof that AI features alone are driving purchases.
"AI capability is becoming a larger part of the PC market, but its presence in a device does not establish that it was the reason for the purchase. Retailers and resellers need to make the benefits clear: what can customers do with a newer machine, and is that worth the additional cost? That explanation becomes even more important when buyers are holding back," she said.
CONTEXT tracks more than £200 billion in annual technology sales transactions across the global market.