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PC shipments shrink for 14th consecutive quarter

PC shipments shrink for 14th consecutive quarter

"The PC market experienced a 14th consecutive quarter of decline, dating back to the second quarter of 2012", Gartner said. Unlike the first quarter of 2017, an improved supply of key notebook components also loosened pressures on both supply and pricing, leading to some recovery of share for the smaller vendors.

"The market is continuing on a resilient path which should see modest commercial momentum through 2020", Jay Chou, a research manager with IDC, said in a statement.

From a geographic perspective, mature markets fared better.

According to IDC, HP is still the leading OEM for PC market during the Q1 2018 as it shipped no less than 13.5 million PCs, up from 13.1 million same quarter previous year.

As portable devices like Mobile and Laptops become more powerful, we are seeing a drop in the PC shipment. IDC expects a likely rise in commercial activity amidst a positive economic environment to further strengthen demand.

One potential contributing factor in the continued decline of traditional PC sales is, few will be surprised to read, higher average selling prices (ASPs) driven in no small part by the scarcity and subsequent increase in cost of DRAM parts.

IDC lauded this as a good thing, saying that staying flat for the third consecutive quarter is a better proposition than the 1.5 percent decline it had previously forecast. Lenovo is the runner-up with 12.3 million, while Dell is now third with 10.1 million shipments. Its ongoing expansion into gaming and continued investments in Chromebooks have paid dividends for the company, but also caused some tough going in other arenas.

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The US kicked off with optimism, especially for notebooks. Total PC shipments in Q1 went to 13.5 million units.

It pegged PC shipment growth at HP and Dell at 2.8% and 6.5%, respectively. Overall, the market saw 60.4 million units shipped, which is virtually the same as the number of new PCs that entered the marketplace in the same quarter a year ago. On the other side, desktops posted strong results, driven by the growing gaming market as well as long-awaited commercial device refreshes in certain sub regions.

The traditional PC market has managed to beat the analyst expectation.

In EMEA, shipments were stable, while at APeJ, they came in lower than expected, with the exception of India and Indonesia.

The Japan commercial market was a couple points below expectations due to slowing of the momentum seen in 4Q17, but it still maintained healthy growth in 1Q18.

Both Gartner and IDC have HP at the top of the pile when it comes to shipments (between 12.8 million and 13.7 million), followed by Lenovo and Dell.


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