Wednesday, 20 March, 2019

Inventory, processor supply issues hit PC shipments

A Lenovo store A Lenovo store
Laurie Berry | 13 January, 2019, 21:13

Global shipments of traditional PCs, including desktop, notebooks, and workstations, fell by 3.7 percent in the last three months of the year 2018 when compared with a year earlier, according to a report by research firm IDC.

"As the U.S. PC market, especially the lower-end, continued to suffer from the ongoing shortfall of Intel CPUs, overall PC sales took a hit during the fourth quarter of 2018", said Neha Mahajan, senior research analyst with IDC's Devices and Displays Group.

"The majority of the PC shipment decline in 2018 was due to weak consumer PC shipments. We expect this demand will be pushed forward into 2019 if CPU availability improves".

For the holiday period, Gartner has worldwide PC shipments at 68.6 million units, down 4.3 percent YoY.

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Political and economic uncertainties in some countries dampened PC demand, she said. Dell reportedly seems to have performed well as its year-on-year growth among the top OEMs is at 1.6 percent for the quarter and ended 2018 progressing by 5.6 percent. World market leader Lenovo was able to further expand its leadership position with a market share of 22.5 percent, behind HP (21.7 percent market share) and Dell (16.2 percent). According to the market research company, the Redmond giant had a 3.3% market share in the United States in Q4 2018 with 472K PC shipments, down 12.9% year-over-year. For the year, PC sales were down 0.4 percent, or roughly flat.

A major factor for Lenovo's share gain was credited to a joint venture with Fujitsu formed in May 2018.

"The market stabilisation in 2018 was attributed to consistent business PC growth, driven by Windows 10 upgrade". Lenovo also had a strong quarter in the US and has recorded three consecutive quarters of double-digit year-over-year shipment growth.

Apple shipments declined 3.8 percent to 4.920, though its market share went slightly higher to 7.2 percent form 7.1 percent. The Asia/Pacific PC market slid 4.6 percent to 24.2 million, mainly on the back of uncertainties around U.S. -China trade relations, there was cautionary demand. Lenovo, which retained its spot as the top manufacturer in terms of shipments, saw modest year-over-year growth. Lastly, Apple retained the same fourth position with year-on-year growth of -3.8 percent, and Acer obtained the fifth position.

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