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Wednesday, April 09, 2014
Windows XP Migration Helps Offset Weak Consumer PC Demand


Worldwide PC shipments in the first quarter of 2014 declined by -4.4% year on year, but it seems that the results are slightly better than expected due to the migration fro Windows XP to other operating systems.

PC shipments in the first quarter of 2014 totaled 73.4 million units, according to the International Data Corporation (IDC).
Although still in decline and with continuing weakness in consumer and emerging market segments, IDC's preliminary results are better than a projected decline of -5.3%.

Gartner, a rival market research company, said that PC shipments in the March quarter fell 1.7 percent. Gartner said total PC shipments in the first quarter were 76.6 million, while IDC said 73.4 million PC were shipped.

Similar to the latter part of 2013, the upside in the first quarter arose primarily from demand in mature commercial markets. Commercial refresh projects, which had already been protracted, received a last push from the impending end of Windows XP support, particularly in Japan. In addition, slowing demand for tablets seems to have helped constrain previously drastic cutbacks in notebooks. Nevertheless, emerging regions continued to post weak results, with growth in Latin America and Asia/Pacific (excluding Japan)(APeJ) falling even faster than recent declines as both economic conditions and continued tablet penetration stifled PC shipments.

"Worldwide PC shipments have now declined for eight consecutive quarters as a result of shifting technology usage and competition (notably with tablets & smartphones) as well as economic pressures (including high unemployment, slow growth & investment, tight credit, and currency fluctuations) related to the Great Recession, sovereign debt crises, and their related impact on international trade," said Loren Loverde, Vice President, Worldwide PC Trackers.

"PC shipment growth in the United States remained slightly faster than most other regions in the first quarter. However, the passing boost from XP replacements, constrained consumer demand, and no clear driver of a market rebound are expected to keep growth below zero going forward," said Rajani Singh, Senior Research Analyst, Personal Computing. "A rebound in consumer or a continuation of accelerated commercial upgrades could boost growth slightly, but low demand for upgrades in general combined with competition from tablets and 2-in-1 systems limit the growth potential."

According to IDC's data, the U.S. market continued to stabilize with growth near zero. With shipments totaling 14.3 million PCs in 1Q14, the U.S. market contracted by -0.6% from the same quarter a year ago. Desktop shipments were slightly stronger, posting 3.5% growth, while portables remained in negative territory.

Top 5 Vendors, Worldwide PC Shipments, First Quarter 2014 (Preliminary) (Units Shipments are in thousands)

Vendor

1Q14 Shipments

1Q14 Market Share

1Q13 Shipments

1Q13 Market Share

1Q14/1Q13 Growth

1. Lenovo

12,962

17.7%

11,732

15.3%

10.5%

2. HP

12,557

17.1%

11,999

15.6%

4.7%

3. Dell

9,856

13.4%

9,014

11.7%

9.3%

4. Acer Group

4,992

6.8%

6,256

8.1%

-20.2%

5. ASUS

4,296

5.9%

4,677

6.1%

-8.1%

Others

28,757

39.2%

33,091

43.1%

-13.1%

Total

73,420

100.0%

76,770

100.0%

-4.4%


Source: IDC Worldwide Quarterly PC Tracker, April 9, 2014

Top 5 Vendors, United States PC Shipments, First Quarter 2014 (Preliminary) (Units Shipments are in thousands)

Vendor

1Q14 Shipments

1Q14 Market Share

1Q13 Shipments

1Q13 Market Share

1Q14/1Q13 Growth

1. HP

3,651

25.6%

3,570

24.9%

2.3%

2. Dell

3,488

24.5%

3,074

21.4%

13.4%

3. Lenovo

1,544

10.8%

1,274

8.9%

21.2%

4. Apple

1,471

10.3%

1,581

11.0%

-7.0%

5. Toshiba

1,188

8.3%

1,278

8.9%

-7.0%

Others

2,920

20.5%

3,571

24.9%

-18.2%

Total

14,262

100.0%

14,349

100.0%

-0.6%


Source: IDC Worldwide Quarterly PC Tracker, April 9, 2014

Lenovo preserved its lead in total worldwide PC shipments despite a seasonal drop due to the Chinese New Year. Growth in other regions continued at a solid pace although Latin America slowed after an expansion over the past year.

HP remained in the number 2 position, with growth rising to nearly 5% year on year, the company's highest growth in more than two years. Strong results in EMEA had the largest impact on HP's results, although growth in the U.S. and Canada also improved notably.

Dell grew over 9% in the first quarter, its highest rate since 4Q11 and the third consecutive quarter of positive year-on-year growth.

Acer continues to work on stabilizing PC shipments. Fourth quarter growth turned up, but first quarter results slipped again. Slow consumer demand, competition from other players, and a shift in product portfolio towards 2-in-1 and tablets all contributed to the slower PC results.

ASUS growth slipped notably in the U.S., but follows a relatively strong fourth quarter. The company is in a challenging spot ? working to expand regional coverage with a consumer focus when emerging regions and consumers are slow parts of the market.





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