Because Windows 10 fails to stimulate laptop and PC sales, European computer stores make big losses. Retailers have laptops and PCs in stock that nobody wants anymore and have to sell them with a loss. Some shops now offer buy one, get two promotions.
The decline in European computer sales is caused by the popularity of smartphones and the free upgrade to Windows 10. Retailers are now panicking because the Holiday Season is coming, a time in which they usually make most of their revenue. However they hardly have room for new laptops and PCs as their stores are still filled with older models, some of which sometimes have to be dusted daily.
With aggressive promotions the shops try to sell some of their old stock, e.g. by offering buy one, get two promotions. The average selling price of laptops is even below cost price which means both retailers and computer vendors are not making profits.
Digitimes reports that Lenovo and HP encouraged retailers to stock up since May and offered them high commissions. This now has become a problem as retailers are unable to sell their stock and have to sell the computers with losses. This also has its effect on Acer and Asus which have to lower their prices to remain competitive.
According to Digitimes an important reason for the disappointing sales is Windows 10. Microsoft's latest operating system fails to stimulate computer sales, something that also was previously found by research company IDC.
While European and Asian computer stores have a hard time, the computer market in the United States is growing. Asian computer vendors like Lenovo, Asus and Acer don't benefit much from that, US consumers mainly buy HP, Dell and Apple.
