HP leads shipments amid sluggish global PC market

HP leads shipments amid sluggish global PC market

HP leads shipments amid sluggish global PC market

The analyst firm's latest report estimates that PC shipments hit 67 million units globally, down 3.6% year-on-year - but Apple's Mac machines slipped to 4.6 million units, a more pronounced decline of 5.6% compared to the third quarter of 2016 (which witnessed almost 4.9 million units shipped).

Lenovo Group (0992HK) saw its second-place share rise slightly as well, to 21.4% from 21%, despite a drop of 1.5% in shipments.

The worldwide PC shipments saw a decline for the 12th straight quarter, as per the latest numbers by research firm Gartner.

"The U.S. traditional PC market exhibited lower overall growth, contracting 3.4% in 3Q17", said Neha Mahajan, senior. research analyst, Devices & Displays.

"Weak back-to-school sales were further evidence that traditional consumer PC demand drivers for PCs are no longer effective", Mika Kitagawa, principal analyst at Gartner, said in a statement. "The countries with stable economies, such as the US, 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". IDC's chart table notes state that "Traditional PCs include Desktops, Notebooks, and Workstations and do not include Tablets or x86 Servers".

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IDC says all markets struggled, with the exception of Japan and Canada, which continued to see positive growth, and Latin America which rebounded after a "dismal" 2016 and first half 2017. In the U.S. market, all PC makers saw a decline in shipment numbers-HP registered the lowest decline at 2.7% year-on-year to soften the blow, while Lenovo lost the most with a 25.2% decline in shipments and Asus clocked a 22% decline. Lenovo continues to face the dilemma of market share gains versus profitability.

"The gains in emerging regions and potential for more commercial replacements represent some upside potential, although we continue to expect incremental declines in total shipments for the next few years", Loverde added.

Although Lenovo slipped further in the States, dropping a staggering 25.2% compared to the same quarter in 2016, which means that Apple is actually the number three PC vendor in the USA now.

A new IDC report shows that PC shipments for Q3 2017 showed a 0.5% decline, better than the 1.4% decline forecast. "Business PC demand is stable in the USA, but demand could slow down among SMBs due to PC price increases due to component shortages". 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 China, the PC market is estimated to have declined by 5 percent in the third quarter of 2017, with more stability in the business market, particularly in large enterprises, than in the consumer space.

The PC Gaming channel is presented by Intel's Game Dev program.

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