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Tough phase for traditional PC market

Sibahle Malinga
By Sibahle Malinga, ITWeb senior news journalist.
Johannesburg, 18 Apr 2017
Global PC shipment growth was arguably flat in 1Q2017, says IDC.
Global PC shipment growth was arguably flat in 1Q2017, says IDC.

Global shipments of traditional PCs (desktop, notebook, and workstation) totalled 60.3 million units in the first quarter of 2017, posting year-over-year growth of 0.6%.

This is according to the International Data Corporation (IDC) Worldwide Quarterly Personal Computing Device Tracker, which found while the 0.6% PC shipment growth was arguably flat; the result nonetheless represented the first foray back into positive territory since Q1 2012, when many users still considered PCs their first computing device.

"The traditional PC market has been through a tough phase, with competition from tablets and smartphones as well as lengthening lifecycles pushing PC shipments down roughly 30% from a peak in 2011," said Jay Chou, research manager, IDC PCD Tracker. "Nevertheless, users have generally delayed PC replacements rather than giving up PCs for other devices. The commercial market is beginning a replacement cycle that should drive growth throughout the forecast. Consumer demand will remain under pressure, although growth in segments like PC Gaming as well as rising saturation of tablets and smartphones will move the consumer market toward stabilisation as well."

IDC's previous forecast had expected shipments to decline 1.8% in the quarter. Like the second half of 2016. The research firm says some of the same forces continue to shape the market. Tight supplies of key components such as NAND and DRAM are affecting inventory dynamics and led a number of vendors to boost shipments to lock in supply ahead of further cost increases.

"In addition, the market continued along a path of stabilisation that began in the latter half of last year, especially as more commercial projects moved out of pilot mode and began shipments in earnest," notes the report.

From a geographic perspective, the report reveals mature markets again outdid emerging markets, with Europe, Middle East and Africa traditional PC market stabilising for the second consecutive quarter, thanks to strong notebook performance. The combination of backlogs, fulfilment from previous quarters, and solid mobility demand in enterprises boosted overall notebook shipments in 1Q17. However, desktops continued to erode, in line with expectations.

Meanwhile, a Gartner report found worldwide PC shipments for the fourth quarter of 2016 totalled 72.6 million units in a 3.7% decline from the fourth quarter of 2015.

For the year, 2016 PC shipments totalled 269.7 million units, a 6.2% decline from 2015. PC shipments have declined annually since 2012, adds Gartner.

"Stagnation in the PC market continued into the fourth quarter of 2016 as holiday sales were generally weak due to the fundamental change in PC buying behaviour," says Mikako Kitagawa, principal analyst at Gartner. "The broad PC market has been static as technology improvements have not been sufficient to drive real market growth. There have been innovative form factors like 2-in-1s and thin and light notebooks, as well as technology improvements, such as longer battery life. This end of the market has grown fast, led by engaged PC users who put high priority on PCs. However, the market driven by PC enthusiasts is not big enough to drive overall market growth."

IDC vendor highlights

HPtook back the top spot for the first time since Q1 2013, seeing a strong quarter in notebooks across all regions.

Lenovo held the second position with relative modest growth of 1.7% globally.

Dell captured the third position, grew 6.2% year over year, and continued its positive growth in every region.

Apple kept the fourth position and grew 4.1% year over year.

Acer regained the fifth position, growing 2.9% in part due to better comparisons against a challenging 1Q16.

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