March 22, 2018

Slower decline for PCs

11 October 2017, 07:42 | Brandon Parsons

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"Worldwide shipments totaled 67 million units, down 3.6% from the year-earlier quarter, and according to lead PC analyst Mika Kitagawa, what really hurt the business was a 10% drop in shipments in the US market, which offset "signs of stabilization" in markets such as Europe, the Middle East, Africa, Japan and Latin America".

As for the USA market, Gartner's Kitagawa said, "Weak back-to-school sales were further evidence that traditional consumer PC demand drivers for PCs are no longer effective". Not surprisingly, competitive pressures further cemented the dominance of the top five PC companies, which accounted for almost 75 percent of the total traditional PC market.

Dell's worldwide PC shipments were slightly down compared to the same period in 2016, as it registered its first year-over-year shipment decline since the first quarter of 2016.

IDC delivered a more positive assessment, reporting that the United States market only contracted by 3.4 percent in Q3, with total shipments coming to 16.6 million.

There are multiple reasons for the continued sluggishness of global PC shipments. "Although desktops continued to erode, growing interest in gaming contributed towards keeping the desktop market afloat", the analysts stated. In the U.S. PC's experienced a notable decline with poor notebook shipments but slightly better desktop shipments.

Indian shipments were supported by market recovery after the GST reform, while the education sector benefited from roll out of the ELCOT project.

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"The gains in emerging regions and potential for more commercial replacements represent some upside potential, although we continue to expect incremental declines in total shipments for the next few years", Loverde added. Apple had largely bucked the trend with Mac sales typically outperforming those of Windows PC manufacturers. As a result, the year-over-year growth of the overall Japan traditional PC market will be in line with forecast.

IDC says HP's figures were helped by major wins in Asia Pacific.

Hong Kong-listed Lenovo shipped 14.5 million personal computers worldwide in the quarter ended September 30 to corner a 21.6 per cent share of the global market, behind market leader HP's 22.8 per cent share on shipments of 15.3 million units, according to preliminary industry estimates from research firm IDC. Lenovo was second with 21.6 percent. Dell fared well internationally, but saw declining volume in North America.

In the U.S., Apple remains the third-most-popular PC vendor, but it saw its Mac sales stateside slide 7.6% year-over-year.

ASUS retained the fifth position, but was the only company in the top 5 to decline faster than the market average. It appears the company is putting more emphasis on profitability than share gain, according to Gartner. Tracker results are delivered to clients in user-friendly excel deliverables and on-line query tools.

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