3Q 2017 witnesses decline in Worldwide PC Shipments: Gartner

Worldwide PC shipments totalled 67 million units in the third quarter of 2017, a 3.6-per cent decline from the third quarter of 2016, according to preliminary results by Gartner. This is the twelfth consecutive quarter of declining PC shipments.

"While there were signs of stabilization in the PC industry in the key regions, including EMEA, Japan and Latin America, the relatively stable results were offset by the U.S. market, which saw a 10-per cent year-over-year decline in part because of a very weak back-to-school sales season," said Mika Kitagawa, Principal Analyst, Gartner. "Business PC demand led by Windows 10 upgrades, continued to drive PC shipments across all regions, but its refresh schedule varies by region. The countries with stable economies, such as the U.S., have created a positive sentiment among businesses, especially for small and midsized businesses (SMBs), which are more vulnerable to external events, such as economic or political."

In the third quarter of 2017, HP Inc. and Lenovo were in a virtual tie for the top spot in the PC market based on shipments. However, HP Inc. is in an upward trend, as it has experienced five consecutive quarter of global PC growth, while Lenovo is in a downward trend with declining shipments in eight of the last ten quarters.

HP Inc. experienced growth in all key regions, except the U.S. market. The company experienced double-digit growth in Latin America, while in Asia-Pacific HP Inc. secured positive growth for the fifth consecutive quarter. Lenovo experienced its steepest year-over-year decline of PC shipments in the U.S. since it acquired the IBM PC business division in 2005. Lenovo continues to face the dilemma of market share gains versus profitability. It appears the company is putting more emphasis on profitability than share gain. Dell's worldwide PC shipments were slightly down compared with a year ago, as it registered its first year-over-year shipment decline since the first quarter of 2016.

In the U.S., PC shipments totalled 14.7 million units in the third quarter of 2017, a 10.3-per cent decline from the third quarter of 2016. It was the fourth consecutive quarter of declining PC shipments.

PC shipments in EMEA totalled 19 million units in the third quarter of 2017, a 1.1-per cent decline year over year. The contraction in the Western European PC market appears to have slowed down, with the potential for stability in the fourth quarter of 2017. Eastern Europe is experiencing flat to small unit declines as demand is not improving, and there is no obvious impact yet from the Windows 10 migration in the business segment.

In Asia-Pacific, PC shipments reached 24 million units in the third quarter of 2017, down 2.1 per cent during the same period last year. While consumer demand remained lacklustre, PC demand in the business segment remained steady, especially for notebooks. In China, the PC market is estimated to have declined by 5 per cent in the third quarter of 2017, with more stability in the business market, particularly in large enterprises, than in the consumer space.

These results are preliminary. Final statistics will be available soon to clients of Gartner's PC Quarterly Statistics Worldwide by Region program. This program offers a comprehensive and timely picture of the worldwide PC market, allowing product planning, distribution, marketing and sales organizations to keep abreast of the key issues and their future implications around the globe.

Tags: 3Q 2017, Worldwide PC Shipments, Gartner, declining PC shipments, PC shipments, PC industry, PC market, HP Inc, Western European PC market, varindia, EMEA, varindia