Worldwide PC shipments totalled 76.6 million units in the first quarter of 2014, registering a decline from the first quarter of 2013, according to preliminary results by Gartner. The severity of the decline eased compared with the past seven quarters.
“The end of XP support by Microsoft on April 8 has played a role in the easing decline of PC shipments,” said Mikako Kitagawa, principal analyst at Gartner. “All regions indicated a positive effect since the end of XP support stimulated the PC refresh of XP systems. Professional desktops, in particular, showed strength in the quarter. Among key countries, Japan was greatly affected by the end of XP support, registering a 35 percent year-over-year increase in PC shipments. The growth was also boosted by sales tax change. We expect the impact of XP migration worldwide to continue throughout 2014.”
“While the PC market remains weak, it is showing signs of improvement compared to last year. The PC professional market generally improved in regions such as EMEA. The U.S. saw the gradual recovery of PC spending as the impact of tablets faded,” Kitagawa said.
The PC market continued to be tough for many vendors. Economies of scale matter tremendously in this high-volume, low-profit market, which is forcing some vendors, such as Sony, out of the market. In contrast, all of the top five vendors, except Acer, registered year-over-year shipment growth. The top thee vendors — Lenovo, HP and Dell — have all confirmed the importance of the PC business as part of their overall business strategies.
Lenovo experienced the strongest growth among the top five vendors. Its shipments grew 10.9% (see Table 1), and Lenovo extended its position as the worldwide leader. The company’s shipments grew in all regions except Asia/Pacific, where growth in China has been problematic. Overall, the China market again slowed, in part due to the long holiday in the middle of the quarter.
Table 1
Preliminary Worldwide PC Vendor Unit Shipment Estimates for 1Q14 (Units)
|
Company |
1Q14 Shipments |
1Q14 Market Share (%) |
1Q13 Shipments |
1Q13 Market Share (%) |
1Q13-1Q14 Growth (%) |
|
Lenovo |
12,907,344 |
16.9 |
11,641,152 |
14.9 |
10.9 |
|
HP |
12,248,274 |
16.0 |
11,770,542 |
15.1 |
4.1 |
|
Dell |
9,541,231 |
12.5 |
8,755,092 |
11.2 |
9.0 |
|
Acer Group |
5,564,358 |
7.3 |
6,534,362 |
8.4 |
-14.8 |
|
Asus |
5,310,000 |
6.9 |
5,064,431 |
6.5 |
4.8 |
|
Others |
31,001,926 |
40.5 |
34,142,058 |
43.8 |
-9.2 |
|
Total |
76,573,135 |
100.0 |
77,907,637 |
100.0 |
-1.7 |
Note: Data includes desk-based PCs and mobile PCs, including x86 tablets equipped with Windows 8, but excludes Chromebooks and other tablets.
Source: Gartner (April 2014)
The share difference between Dell and HP once again narrowed compared to last quarter. In the first quarter of 2014, HP achieved its fastest shipment growth of the last two years. HP’s shipment growth in EMEA well exceeded the regional average, which improved HP’s overall growth. Dell maintained a strong position in the market. Since the completion of the leverage buyout last year, Dell has been aggressively expanding its PC business throughout the regions. The first quarter of 2014 was the third consecutive quarter of PC shipment growth for Dell, registering its highest growth since the fourth quarter of 2011.
In the U.S. market, PC shipments totaled 14.1 million units in the first quarter of 2014, a 2.1% increase from the same period last year. HP maintained the No. 1 position, as it accounted for 25% of PC shipments in the U.S. market. Dell and Lenovo experienced the strongest growth among the top five vendors, with growth rates of 13.2% and 16.8%.
“In terms of the major structural shift of the PC market, the U.S. market is ahead of other regions,” Kitagawa said. “The installed base of PCs started declining in 2013, while the worldwide installed base still grew. The U.S. PC market has been highly saturated with devices: 99 percent of households own at least one or more desktops or laptops, and more than half of them own both. While tablet penetration is expected to reach 50% in 2014, some consumer spending could return to PCs.”