Press release

Commercial Segment Provides a Bright Spot in the Traditional PC Market, According to IDC

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The worldwide market for traditional PCs, inclusive of desktops,
notebooks, and workstations, declined 3.0% year over year in the first
quarter of 2019 (1Q19), according to preliminary results from
International Data Corporation’s (IDC)
Worldwide
Quarterly Personal Computing Device Tracker
. Global shipments were
above expectations, reaching 58.5 million during the quarter.

Although the shortage of Intel processors, mostly at the lower end,
remained a factor in seeing a contraction in 1Q19, the market performed
better than expected with most regions exceeding forecast. Stronger than
expected desktop shipments further boosted volume, coming on the heels
of a tough previous quarter, (4Q18), which had lackluster consumer
demand and desktop supply issues. Furthermore, more PC brands turned to
AMD chips. All of this, combined with firms rounding the last corner on
its Windows 10 migration deployments, led to a shift in the market for
traditional PCs towards more commercial and premium products.

“Desktop PCs were surprisingly resilient as the commercial segment
helped drive a refresh during the quarter,” said Jitesh
Ubrani
, research manager for IDC’s Mobile
Device Trackers
. “Capitalizing on this refresh cycle, the top
vendors – HP, Lenovo, and Dell – each increased their year-over-year
volume and captured additional share in the desktop PC market.”

“The U.S. market saw year-over-year volumes decline in notebooks as
consumer demand softened during the quarter, offsetting the modest gains
we saw in desktops,” said Tom
Mainelli
, group vice president for Devices at IDC. “Among the top
U.S. PC vendors, only Lenovo saw notebook growth from the same quarter a
year ago. It represents a tough start to an important year as the
industry marches toward the end of life for Microsoft’s Windows 7.”

Regional Highlights

Asia/Pacific (excluding Japan) (APeJ): The traditional PC market
in APeJ posted a single-digit decline, close to IDC’s forecast. Adverse
economic conditions, weak consumer demand, and component shortages all
had a negative impact on sell-in across the region. The market in India
posted a decline on the back of further softness in consumer demand and
channel overstock, while elections contributed to a delay in commercial
projects. Meanwhile, China came in above expectations as vendors pushed
more inventory into the channels despite macroeconomic woes and trade
tensions with the United States.

Canada: The traditional PC market in Canada continues to exceed
expectations and some of this is driven by improvement in the commercial
segment. As a result, retail distribution has eroded somewhat and
purchasing has slowly shifted to more commercial-friendly channels, such
as dealers, value added resellers, and system integrators.

Europe, Middle East, and Africa (EMEA): The traditional PC market
came in negative in 1Q19, its second sequential decline after five
quarters of growth. Softness was evident primarily in notebooks as
component shortages continued to inhibit available supplies to meet the
market demand.

Japan: With the end of support for Windows 7 on the horizon,
commercial shipments accelerated and the segment beat previous
expectations. However, the consumer segment continued to struggle due to
extended replacement cycles and higher smartphone usage.

Latin America: Despite unfavorable macroeconomic conditions in
major economies such as Brazil, Mexico, and Argentina during the first
quarter of 2019, PC shipments were better than expected. The overall
Latin America market declined in the single digits versus the previous
forecast of a 13% decline.

USA: Intel CPU shortages continued to pose a production
bottleneck for PC makers, making it difficult to meet new demand
especially from the business side as the Windows 10 migration continues.
Notebooks were particularly hard hit as inventory overhang from the
previous quarter coupled with lower consumer interest in new PCs
restrained unit volume growth.

Company Highlights

Despite a year-over-year decline of 0.8%, HP Inc. managed to
regain the top position with 13.6 million traditional PCs shipped during
the quarter. Japan was a particularly strong market for the company as
it managed to record high double-digit growth during the quarter,
largely due to the end of support for Windows 7.

Lenovo slipped into second place after two quarters in the top
position. However, on a global basis the company has maintained a
consistent growth trajectory over the course of the past year. During
the recent quarter, mature markets such as North America and Japan
served as strongholds for the company.

Dell Technologies was in third place and managed to experience
the strongest growth during the quarter. Similar to HP and Lenovo, Dell
was able to capture a larger share of the desktop market. The vendor had
sizable growth in Japan and Western Europe.

Apple saw a slight decline during the quarter with 4.1 million
units shipped. Though the company refreshed some of its notebooks
recently, the latest models have not been met with the greatest fanfare
as reviews point to hardware issues that may affect sales in the coming
months.

Acer Group rounded out the top 5 with 6.1% market share during
the quarter. Like many others, Acer was challenged by Intel’s shortages
though the company was able to sidestep the issue in a few cases by
incorporating older CPUs from Intel into its Chromebooks. Both Chrome
and gaming remain a focus for the company though the company struggles
to maintain traction elsewhere.

 
Top Companies, Worldwide Traditional PC Shipments, Market Share,
and Year-Over-Year Growth, Q1 2019
(Preliminary results,
shipments are in thousands of units)
Company  

1Q19
Shipments

 

1Q19
Market
Share

 

1Q18
Shipments

 

1Q18
Market Share

 

1Q19/1Q18
Growth

1. HP Inc.   13,580   23.2%   13,688   22.7%   -0.8%
2. Lenovo*   13,427   23.0%   13,194   21.9%   1.8%
3. Dell Technologies   10,379   17.7%   10,190   16.9%   1.9%
4. Apple   4,058   6.9%   4,078   6.8%   -0.5%
5. Acer Group   3,588   6.1%   4,140   6.9%   -13.3%
Others   13,451   23.0%   15,013   24.9%   -10.4%
Total   58,484   100.0%   60,304   100.0%   -3.0%
 
Lenovo (excluding Fujitsu volume in 1Q18)**   13,427   23.0%   12,304   20.4%   9.1%
Source: IDC Quarterly Personal Computing Device Tracker, April 10,
2019
 

Notes:

* Due to the Joint Venture between Lenovo and Fujitsu, data for
Lenovo in the top line includes Fujitsu shipment volume for both 1Q19
(854K) and 1Q18 (890K).

** For year-on-year comparison, an extra line has been added
below the table to show what Lenovo’s growth would have looked like
excluding Fujitsu shipment volume in 1Q18.

  • Some IDC estimates prior to financial earnings reports. Data for all
    companies are reported for calendar periods.
  • Shipments include shipments to distribution channels or end users. OEM
    sales are counted under the company/brand under which they are sold.
  • Traditional PCs include Desktops, Notebooks, and Workstations and do
    not include Tablets or x86 Servers. Detachable Tablets and Slate
    Tablets are part of the Personal Computing Device Tracker but are not
    addressed in this press release.

In addition to the table above, a graphic illustrating worldwide market
share for the top 5 PCD companies over the previous five quarters is
available by viewing this
press release on IDC.com
.

IDC’s Worldwide
Quarterly Personal Computing Device Tracker
gathers detailed market
data in over 90 countries. The research includes historical and forecast
trend analysis among other data.

For more information, or to subscribe to the research, please contact
Kathy Nagamine at 650-350-6423 or knagamine@idc.com.

About IDC Trackers
IDC
Tracker
products provide accurate and timely market size, company
share, and forecasts for hundreds of technology markets from more than
100 countries around the globe. Using proprietary tools and research
processes, IDC’s Trackers are updated on a semiannual, quarterly, and
monthly basis. Tracker results are delivered to clients in user-friendly
excel deliverables and on-line query tools.

About IDC
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