Gartner reveals worldwide PC shipments declined 9.6% in Q1 2016

PCWorldwide PC shipments totaled 64.8 million units in the first quarter of 2016, a 9.6 percent decline from the first quarter of 2015, according to preliminary results by Gartner, Inc.

“The deterioration of local currencies against the US 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, 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, Kitagawa said. “The ongoing decline in US 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 percent decline in shipments. Lenovo experienced a shipment decline in all regions except North America, where the company’s PC units increased 14.6 percent from the same period last year. In the last four quarters, Lenovo has showed double-digit shipment growth in the US, while the overall market has declined.

Table 1

Preliminary Worldwide PC Vendor Unit Shipment Estimates for 1Q16 (Thousands of Units)

Company 1Q16 Shipments 1Q16 Market Share (%) 1Q15 Shipments 1Q15 Market Share (%) 1Q16-1Q15 Growth (%)
Lenovo 12,484 19.3 13,458 18.8 -7.2
HP Inc. 11,408 17.6 12,537 17.5 -9.0
Dell 9,145 14.1 9,182 12.8 -0.4
Asus 5,365 8.3 5,288 7.4 1.5
Apple 4,611 7.1 4,563 6.4 1.0

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 emphasise high-end sales, which cost it shipments.

Dell’s worldwide PC shipments declined 0.4 percent 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.

PC shipments in EMEA totaled 19.5 million units in the first quarter of 2016, a decline of 10 percent year over year. In Western Europe, consumer demand remained stable in Germany and the UK, 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 programme. This programme offers a comprehensive and timely picture of the worldwide PC market, allowing product planning, distribution, marketing and sales organisations to keep abreast of key issues and their future implications around the globe.


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