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TMCNet:  Traditional PC Market Fares Slightly Better Than Expectations as Component Shortage Pressures Ease, According to IDC

[July 12, 2017]

Traditional PC Market Fares Slightly Better Than Expectations as Component Shortage Pressures Ease, According to IDC

Worldwide shipments of traditional PCs (desktop, notebook, workstation) totaled 60.5 million units in the second quarter of 2017 (2Q17), posting a year-on-year decline of 3.3%, according to the International Data Corporation (IDC) Worldwide Quarterly Personal Computing Device Tracker. The results tilted just above the previous forecast that called for a decline of 3.9%, and hewed to the expectation that unlike past seasonal patterns of significant positive sequential growth, second quarter volume showed only a modest uptick from the first quarter.

Whereas one factor affecting shipments during the past several quarters was an inventory buildup caused by shortages of key components such as SSD (Solid State Drive), the second quarter operated under less harsh constraints, though in some instances component shortages still played a role in driving shipment dynamics. Moreover, as expected, the increased bill of materials (BOM) cost due to the shortage also began to impact the final price of systems, which was also factored into IDC's original assumption of inhibiting shipments.

From a geographic perspective, mature markets generally outperformed emerging markets, with Asia/Pacific (excluding Japan) and Latin America in particular showing weakness, though Latin America did outperform IDC's original forecast. The U.S. posted just a slight decline but otherwise also pulled ahead of forecast in part due to Chromebook activity. Japan again posted positive growth, in part against the backdrop of tough market conditions in 2015 through the first half of 2016.

"Amid some unevenness in market trends across the regions, the global PC market has continued to trend toward stabilization," said Jay Chou, research manager, IDC Worldwide Personal Computing Device Tracker. "Despite recent issues wrought by component shortages and its effect on system prices, we expect the momentum of commercial market replacements will contribute to eventual market growth. Consumer demand will remain under pressure, although growth in areas like PC gaming and the increasingly attractive portfolio of sleek Windows-based systems will help push the consumer market to stabilize as well."

"The U.S. PC market continues to hold, with an estimated 0.4% contraction in 2Q17," added Linn Huang, research director, Devices & Displays. "The U.S. market remains relatively immune to currency issues in other regions. Chromebooks for K-12 continued its momentum unabated, and Apple (News - Alert) appears to be back on track with an uncharacteristically poor 2016 in its rearview mirror."

Regional Highlights

United States: The U.S. traditional PC market continued to hold in comparison to other regions. Pricing pressures brought on by currency weakness have not affected the aggregate product mix in the U.S. as it has in other regions. Chromebooks remained a source of significant volume growth in the education-buying mid-quarters. Inventory preparation and deployment for government projects, particularly around Windows 10 migration, also kept commercial volumes afloat.

Europe, Middle East and Africa (EMEA): The EMEA traditional PC market showed further stability in 2Q17, primarily driven by the solid performance of notebook sales. An acceleration in mobility adoption was a major contributor to the positive notebook results, exceeding IDC's expectations. However, desktop sales performed in line with forecast.

Asia/Pacific (excluding Japan): The traditional PC market in the Asia/Pacific (excluding Japan) region returned negative results this quarter, slightly below IDC's expectations. GST (News - Alert) reform in India had an adverse impact on shipments in the country, with channel players placing cautious orders amid uncertainty in the market, while the anticipated ELCOT education tender has been postponed due to legal issues surrounding execution of the project. In China, the market is expected to return softer results, as consumer demand slowed and the industry faces high inventory levels.

Japan: The traditional PC market continued its recovery from tough conditions in 2015 and 2016, with further transition from desktop to notebook in the commercial sector, but more importantly a number of refresh projects to replace PCs bought during the last upgrade cycle four years ago.

Vendor Highlights

HP Inc. retained the top spot for the second quarter in a row. The vendor hit a new high mark for market share at nearly 23%, with aggressive growth in virtually all regions.

Lenovo (News - Alert) held the second position but shrank 5.7% globally. The vendor saw significant slowing in North America but still managed to grow its notebook business overall.

Dell (News - Alert) took the third position, growing 3.7% year over year, and continuing its positive growth in every region with strong notebook volume.

Apple kept the fourth position and grew 1.7% year over year.

ASUS regained the fifth position, overtaking Acer.



Top 5 Vendors, Worldwide Traditional PC Shipments, Second Quarter 2017 (Preliminary)
(Shipments are in thousands of units)
Vendor

2Q17
Shipments

2Q17 Market
Share

2Q16
Shipments

2Q16 Market
Share

2Q17/2Q16
Growth

1. HP Inc 13,782 22.8% 12,974 20.7% 6.2%
2. Lenovo 12,434 20.5% 13,189 21.1% -5.7%
3. Dell Inc 10,328 17.1% 9,963 15.9% 3.7%
4. Apple 4,331 7.2% 4,260 6.8% 1.7%
5. ASUS 4,112 6.8% 4,500 7.2% -8.6%
Others 15,555 25.7% 17,721 28.3% -12.2%
Total 60,543 100.0% 62,607 100.0% -3.3%
Source (News - Alert): IDC Worldwide Quarterly Personal Computing Device Tracker, July 12, 2017

Table Notes:

  • Some IDC estimates prior to financial earnings reports.
  • Shipments include shipments to distribution channels or end users. OEM sales are counted under the vendor/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 (PCD) Tracker, but are not addressed in this press release.
  • Data for all vendors are reported for calendar periods.

In addition to the table above, an interactive graphic showing worldwide personal computing device market share for the top 5 vendors over the previous five quarters is available here. The chart is intended for public use in online news articles and social media. Instructions on how to embed this graphic can be found 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, vendor 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
International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly-owned subsidiary of International Data Group (IDG), the world's leading media, data and marketing services company that activates and engages the most influential technology buyers. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC and LinkedIn.

All product and company names may be trademarks or registered trademarks of their respective holders.


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