3. New Zealand IT Market
3.1 Sales Activity (Updated)
The information in this section is taken from a 2001 survey of IT firms conducted by Statistics New Zealand (Statistics NZ 2002b) and applies to the financial year to March 2001. For more information about the survey see Section 2 above. Data for 2000 has been revised since the previous report, as more accurate information has become available (similar revisions were also made in previous years).
The total value of the New Zealand IT industry, excluding telecommunications, in the March 2001 financial year was $6,823.6 million, up 3.3% from the previous year. This year figures for telecommunications were not available.
These gross figures include an unknown level of double counting of retail and wholesale sales. Consequently, the data used in Figure 3.1.1 represents goods and services sold to end users only and, in 2001, excludes $1,989 million reported in the survey as "other customer sales" and $770.2 million reported as "export sales."
Figure 3.1.1: New Zealand End User Computer Hardware, Software and Services Market, Excluding Telecommunications Services ($NZ Millions)
(Statistics NZ 2002b)
Note: The 2000 figures include a number of revisions due to more accurate information becoming available since the 2001 report.
The Single User Hardware category refers to complete computers intended for use by only one person at any one time and so mainly comprises desktop and personal computers. Multi-User Hardware refers to computers intended for use by many people at the same time and includes file servers, midrange systems and mainframes. Parts of computer systems (other than the CPU) when sold separately appear under Peripherals.
Table 3.1.1: Changes in End User Sales Since 1996 (Percent)
| | 1997 | 1998 | 1999 | 2000 | 2001 |
|---|
| Computer h/w: single user systems | -12.4 | 3.5 | 5.4 | -11.2 | 5.0 |
| Computer h/w: multi-user systems | -5.8 | -0.2 | -2.5 | -10.9 | -6.3 |
| Peripheral computer equipment | -5.7 | 11.6 | 14.3 | -9.3 | -2.8 |
| Communications hardware and cables | 15.9 | -7.8 | -19.8 | 39.1 | 25.9 |
| Software sales | -13.9 | 27.7 | 24.3 | -15.9 | 19.0 |
| Computer services | 4.5 | 13.7 | 17.2 | 15.9 | -1.3 |
| Training and education in IT | 2.4 | -1.3 | 41.1 | 53.5 | -2.8 |
| Communication services | 13.5 | 12.2 | -4.6 | 4.2 | |
| Total New Zealand end-user sales | 6.2 | 10.2 | 1.8 | 5.3 | 4.0 |
Total end user sales growth over the past five years has varied between 10.2% (1998) and 1.8% (1999). The last two years (5.3% and 4.0% respectively) are typical, but there has been wide fluctuation in various types of end user sales, with communications equipment and cables increasing by 39% in 2000 and 26% in 2001. Most other areas declined slightly in 2001, except for software (up 19%) which has fluctuated widely over the past five years (max 28% growth in 1998 and min -16% last year).
3.2 Business Activity (GST) Indicator
The Business Activity Indicator uses GST data from the Inland Revenue Department matched to the Statistics New Zealand Business Frame. Figure 3.2.1 represents sales and purchases for the computer services industry (ANZSIC L783, Statistics NZ 1996) measured quarterly since early 1993. Following relatively little growth through 1995, sales grew steadily except for a pronounced dip over the Y2K transition period between October 1999 and February 2000. Sales increased again throughout 2000 but since early 2001 they have flatted out.
The gap between "purchases" and "sales" can be regarded as a measure of "added value."
Figure 3.2.1: Business Activity (GST) Indicator for the Computer Services Industry from April 1993 to March 2001
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