Gartner Says Worldwide PC Shipments Declined 2.4 Percent in First Quarter of 2017

For the First Time Since 2007, Quarterly PC Shipments Were Below 63 Million Units

STAMFORD, Conn.--()--Worldwide PC shipments totaled 62.2 million units in the first quarter of 2017, a 2.4 percent decline from the first quarter of 2016, according to preliminary results by Gartner, Inc. The first quarter of 2017 was the first time since 2007 that the PC market experienced shipments below 63 million units in a quarter.

“Vendors who do not have a strong presence in the business market will encounter major problems, and they will be forced to exit the PC market in the next five years. However, there will also be specialized niche players with purpose-built PCs, such as gaming PCs and ruggedized laptops.”

The PC industry experienced modest growth in the business PC market, but this was offset by declining consumer demand. Consumers continued to refrain from replacing older PCs, and some consumers have abandoned the PC market altogether. The business segment still sees the PC as an important device, and it's the main work device for businesses.

"While the consumer market will continue to shrink, maintaining a strong position in the business market will be critical to keep sustainable growth in the PC market. Winners in the business segment will ultimately be the survivors in this shrinking market," said Mikako Kitagawa, principal analyst at Gartner. "Vendors who do not have a strong presence in the business market will encounter major problems, and they will be forced to exit the PC market in the next five years. However, there will also be specialized niche players with purpose-built PCs, such as gaming PCs and ruggedized laptops."

"The top three vendors — Lenovo, HP and Dell — will battle for the large-enterprise segment. The market has extremely limited opportunities for vendors below the top three, with the exception of Apple, which has a solid customer base in specific verticals."

The competition among the top three vendors intensified in the first quarter of 2017. Lenovo and HP were in a virtual tie for the top spot. Lenovo accounted for 19.9 percent of worldwide PC shipments (see Table 1), followed by HP with 19.5 percent share, and Dell at 15 percent share. Lenovo's growth exceeded the regional average in all key regions except the U.S.

Table 1

Preliminary Worldwide PC Vendor Unit Shipment Estimates for 1Q17 (Thousands of Units)

Company

 

1Q17
Shipments

 

1Q17 Market
Share (%)

 

1Q16
Shipments

 

1Q16 Market
Share (%)

 

1Q17-1Q16
Growth (%)

Lenovo   12,377   19.9   12,226   19.2   1.2
HP Inc. 12,118 19.5 11,383 17.9 6.5
Dell 9,351 15.0 9,040 14.2 3.4
Asus 4,547 7.3 5,287 8.3 -14.0
Apple 4,217 6.8 4,034 6.3 4.5
Acer Group 4,190 6.7 4,266 6.7 -1.8
Others 15,380 24.7 17,486 27.4 -12.0
Total   62,180   100.0   63,721   100.0   -2.4
Notes: Data includes desk-based PCs, notebook PCs and ultramobile premiums (such as Microsoft Surface), but not Chromebooks or iPads. All data is estimated based on a preliminary study. Final estimates will be subject to change. The statistics are based on shipments selling into channels. Numbers may not add up to totals shown due to rounding.
Source: Gartner (April 2017)

HP showed the strongest growth among the top six vendors, as its global PC shipments increased 6.5 percent in the first quarter of 2017. HP's shipments grew in all regions, and it did especially well in the U.S. market, where it had a 15.9 percent increase in PC shipments (see Table 2).

Dell has achieved four consecutive quarters of year-over-year growth. It had PC shipment increases in all regions except the U.S. Dell enhanced its channel program and expanded its share in the large-enterprise market.

The PC industry is also experiencing a price increase. Over two years ago, the price hike was attributed to the local currency deterioration against the U.S. dollar. This time around, the price hike is due to a component shortage.

"DRAM prices have doubled since the middle of 2016, and SSD has been in short supply as well," Ms. Kitagawa said. "The price hike will suppress PC demand even further in the consumer market, discouraging buyers away from PC purchases unless it is absolutely necessary. The price hike started affecting the market in 1Q17. This issue will grow into a much bigger problem in 2Q17, and we expect it to continue throughout 2017."

In the U.S., PC shipments totaled 12.3 million units in the first quarter of 2017, a 2.4 percent decline from the first quarter of 2016. The U.S. market has experienced a modest decline for two quarters. Much of the decline is attributed to the weak consumer market.

Table 2
Preliminary U.S. PC Vendor Unit Shipment Estimates for 1Q17 (Thousands of Units)

Company

 

1Q17
Shipments

 

1Q17 Market
Share (%)

 

1Q16
Shipments

 

1Q16 Market
Share (%)

 

1Q17-1Q16
Growth (%)

HP Inc.   3,572   29.1   3,083   24.5   15.9
Dell 3,238 26.4 3,385 26.9 -4.3
Lenovo 1,720 14.0 1,785 14.2 -3.6
Apple 1,470 12.0 1,483 11.8 -0.9
Asus 503 4.1 636 5.1 -20.8
Others 1,755 14.3 2,195 17.5 -20.0
Total   12,260   100.0   12,566   100.0   -2.4
Notes: Data includes desk-based PCs, notebook PCs and ultramobile premiums (such as Microsoft Surface), but not Chromebooks or iPads. All data is estimated based on a preliminary study. Final estimates will be subject to change. The statistics are based on shipments selling into channels. Numbers may not add up to totals shown due to rounding.
Source: Gartner (April 2017)

PC shipments in EMEA totaled 17.9 million units in the first quarter of 2017, a 6.9 percent decline year over year. All major regions in EMEA experienced a decline in the first quarter. However, Russia saw single-digit PC growth, which was attributed to stabilization of the local economy.

The Asia/Pacific PC market showed some stabilization, as PC shipments totaled 22.8 million units in the first quarter of 2017, a 0.8 percent decline from the first quarter of 2016. PC spending in China began to show a modest recovery. Steady economic conditions were an influencing factor driving a PC refresh.

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 key issues and their future implications around the globe.

About Gartner

Gartner, Inc. (NYSE:IT) is the world's leading information technology research and advisory company. Gartner delivers the technology-related insight necessary for its clients to make the right decisions, every day. From CIOs and senior information technology (IT) leaders in corporations and government agencies, to business leaders in high-tech and telecom enterprises and professional services firms, to supply chain professionals, digital marketing professionals and technology investors, Gartner is the valuable partner to clients in more than 11,000 distinct enterprises. Gartner works with clients to research, analyze and interpret the business of IT within the context of their individual roles. Gartner is headquartered in Stamford, Connecticut, U.S.A., and has almost 9,000 associates, including 1,900 research analysts and consultants, operating in more than 90 countries. For more information, visit www.gartner.com.

Contacts

Gartner
Christy Pettey, +1-408-709-8124
christy.pettey@gartner.com

Recent Stories

RSS feed for Gartner, Inc.

Gartner, Inc.