Hardware

Lenovo dominates PC shipment market

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Gartner’s Q2 2019 preliminary PC shipment results reveal Lenovo is once again the top PC brand, as its market share grew by 25% in the second quarter of 2019.

Lenovo retained the top spot in the second quarter of 2019 with the fastest year-over-year growth and the largest share gain among the top vendors.

HP and Dell follow Lenovo, and the three vendors account for 64.1% of all PC shipments globally.

The current quarter results show HP’s worldwide PC shipments increased by 2.6% in the second quarter of 2019 versus the same period last year. Dell grew by 2.1%.

Gartner publishes preliminary results for PC shipments quarterly, as the final results tend to not differ much, so a report with the preliminary quarterly results is released each quarter at gartner.com.

According to Gartner, PC shipments totalled 63 million units in the quarter, up from 62 million units in the second quarter of 2018.

The PC market grew by 1.5% globally in the second quarter of 2019, after two quarters of decline.

The results cover desktop PCs, notebook PCs and portable premium products, but not Chromebooks or iPads.

Gartner senior principal analyst Mikako Kitagawa says: “Worldwide PC shipments growth was driven by demand from the Windows 10 refresh in the business market in the second quarter of 2019.

“Desktop PC growth was strong, which offset a decline in mobile PC shipments. Additionally, there are signs the Intel CPU shortage is easing, which has been an ongoing impact on the market for the past 18 months. The shortage mainly impacted small and midsize vendors, as large vendors took advantage and continued to grow, taking market share away from the smaller vendors that struggled to secure CPUs,” notes Kitagawa.

A matter of strategy

“A powerful brand and product strategy always helps a company to stay on top. Lenovo has focused on its brand strategy and it shows in the results,” says analyst Arthur Goldstuck, World Wide Worx MD.

He says we can expect Lenovo to be dominant the market for the next few quarters.

Goldstuck notes brands like Apple need to change their strategies as they have a stagnant approach and there is no tremendous innovation.

Gartner notes the ongoing US-China trade dispute, and the potential imposition of tariffs, add uncertainty to the near-term outlook for PC demand.

“While the US-China trade war did not impact the PC market in the second quarter of 2019, the next phase of tariffs could have a significant impact. Most laptops and tablets are currently manufactured in China, and sales of these devices in the US could face significant price increases if the punitive tariffs are imposed and vendors do not take quick action to respond,” says Kitagawa.

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