Worldwide PC Shipments Declined 9.6 Percent in Q1 of 2016
April 12, 2016 | Gartner, Inc.Estimated reading time: 3 minutes
Worldwide PC shipments totaled 64.8 million units in the first quarter of 2016, a 9.6% decline from the first quarter of 2015, according to preliminary results by Gartner, Inc. This was the sixth consecutive quarter of PC shipment declines, and the first time since 2007 that shipment volume fell below 65 million units.
"The deterioration of local currencies against the U.S. dollar continued to play a major role in PC shipment declines. Our early results also show there was an inventory buildup from holiday sales in the fourth quarter of 2015," said Mikako Kitagawa, principal analyst at Gartner.
"All major regions showed year-over-year shipment declines, with Latin America showing the steepest drop, where PC shipments declined 32.4 percent. The Latin American PC market was intensely impacted by Brazil, where the problematic economy and political instability adversely affected the market, Ms. Kitagawa said. "The ongoing decline in U.S. PC shipments showed that the installed base is still shrinking, a factor that played across developed economies. Low oil prices drove economic contraction in Latin America and Russia, changing them from drivers of growth to market laggards."
PCs are not being adopted in new households as they were in the past, especially in emerging markets. In these markets, smartphones are the priority. In the business segment, Gartner analysts said the Windows 10 refresh is expected to start toward the end of 2016.
Lenovo maintained the No. 1 position in worldwide PC shipments in the first quarter of 2016 despite a 7.2% decline in shipments. Lenovo experienced a shipment decline in all regions except North America, where the company's PC units increased 14.6% from the same period last year. In the last four quarters, Lenovo has showed double-digit shipment growth in the U.S., while the overall market has declined.
HP was split into Hewlett Packard Enterprise and HP Inc. at the end of 2015, and HP Inc.'s first quarter indicates the challenges the company faces in the PC market. HP Inc. has said it wants to stay away from low-profit segments, and the first quarter of 2016 results reflect its efforts to emphasize high-end sales, which cost it shipments.
Dell's worldwide PC shipments declined 0.4% in the first quarter, which was much better than the global industry average. Dell shipments increased in North America and Japan, but shipments declined in EMEA, Asia/Pacific and Latin America.
In the U.S., PC shipments totaled 13.1 million units in the first quarter of 2016, a 6.6% decline from the first quarter of 2015. U.S. PC shipment volume was the lowest in three years.
"Vendors that had a strong consumer focus struggled to increase sell in shipments," Ms. Kitagawa said. "There was no particular motivation for U.S. consumers to purchase PCs in the first quarter of 2016. There have been increased sales of two-in-one PCs, but not enough to offset the decline in desktop and traditional notebook sales."
Dell surpassed HP Inc. to become the No. 1 vendor in the U.S. market based on shipments. Dell's PC shipments grew 3.1% in the U.S., while HP Inc.'s shipments declined 17.3%. Dell benefited from focusing on the business segment instead of the consumer market.
Asia/Pacific PC shipments reached 23.3 million units in the first quarter of 2016, a 5.1% decline from the first quarter of 2015. The ongoing fragile Chinese economy and weak global demand continued to dampen consumer sentiment in the region. With high PC penetration in the major cities, it was a challenge to invoke PC replacements on the appeal of new technology. The PC life cycle is lengthening as many consumers are waiting until their PC breaks down before purchasing a new one.
PC shipments in EMEA totaled 19.5 million units in the first quarter of 2016, a decline of 10% year over year. In Western Europe, consumer demand remained stable in Germany and the U.K., while in France, the PC segment was impacted by the transition to high-definition TV. Consumers preferred to buy new TVs or a specific box for the TV reception. In the business segment, large organizations are testing and evaluating Windows 10, and major deployment will start at the end of 2016.
These results are preliminary. Final statistics will be available soon to clients of Gartner's PC Quarterly Statistics Worldwide by Region program. This program offers a comprehensive and timely picture of the worldwide PC market, allowing product planning, distribution, marketing and sales organizations to keep abreast of key issues and their future implications around the globe.
Suggested Items
Catching Up With TapRen Tech Solutions’ Tristan Ren
05/21/2024 | Dan Beaulieu, D.B. Management GroupI am always looking for companies that develop new and innovative ways of doing things, so I was delighted when I got a call from Tristan Ren, who wanted to tell me about his new company TapRen Tech Solutions. As I talked to “Ren,” I realized this was not your normal value-added broker. (I know everyone hates that term but that’s what many of these companies are.)
Real Time with… IPC APEX EXPO 2024: Unveiling the New Chief Strategist of Advanced Packaging at IPC
05/21/2024 | Real Time with...IPC APEX EXPODevan Iyer, IPC's new chief strategist of advanced packaging, shares his industry experience and the objectives of his role and emphasizes the necessity for solid standards and guidelines for new packaging technologies and design methodologies. He also highlights the significance of diverse package technologies across different markets. Devan is looking forward to collaborating with IPC and industry members as they find ways to connect emerging package technologies with PCB/EMS systems.
SPEA Expands in Southeast Asia with New Subsidiary in Thailand
05/17/2024 | SPEASPEA, a global leader in automatic test equipment for the manufacturing of semiconductor, microelectronic and electronic devices, today announced the opening of its new subsidiary in Thailand. This expansion marks a significant step forward in SPEA's commitment to serving the growing Southeast Asian microchip and electronics market with leading-edge manufacturing machinery and equipment.
PCB Market Size to Grow by $29.06B from 2024-2028
05/17/2024 | PRNewswireThe global printed circuit board (PCB) market size is estimated to grow by USD 29.06 bn from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of over 6.6% during the forecast period.
AT&S 2024/25 on Growth Course Again
05/17/2024 | AT&SAT&S operated in a challenging market environment in the financial year 2023/24. After a strong second quarter, demand was relatively weak again in some market segments in the second half of the financial year.