Worldwide PC shipments decline 4.3 per cent in Q2 2017: Gartner

by Pippa Sanderson   20 July, 2017
Worldwide PC shipments decline 4.3 per cent in Q2 2017: Gartner

Mikako Kitagawa, Principal Analyst at Gartner.

According to preliminary results by research firm Gartner, worldwide PC shipments totalled 61.1 million units in the second quarter of 2017, a 4.3 per cent decline from the second quarter of 2016. The PC industry is in the midst of a five-year slump, and this is the 11th straight quarter of declining shipments. Shipments in the second quarter of this year were the lowest quarter volume since 2007.

“Higher PC prices due to the impact of component shortages for DRAM, solid state drives (SSDs) and LCD panels had a pronounced negative impact on PC demand in the second quarter of 2017,” said Mikako Kitagawa, Principal Analyst at Gartner. “The approach to higher component costs varied by vendor. Some decided to absorb the component price hike without raising the final price of their devices, while other vendors transferred the costs to the end-user price. However, in the business segment, vendors could not increase the price too quickly, especially in large enterprises where the price is typically locked in based on the contract, which often runs through the quarter or even the year. In the consumer market, the price hike has a greater impact as buying habits are more sensitive to price increases. Many consumers are willing to postpone their purchases until the price pressure eases.”

HP Inc reclaimed the top position from Lenovo in the worldwide PC market in the second quarter of 2017, achieving five consecutive quarters of year-over-year growth. Shipments grew in most regions, and it did especially well in the US market where its shipments growth far exceeded the regional average.

Lenovo’s global shipments declined 8.4 per cent in the second quarter of 2017, after two quarters of growth. Lenovo recorded year-over-year shipment declines in all key regions. Ms Kitagawa said the 2Q17 results could reflect Lenovo’s strategic shift from unit share gains to margin protection. The strategic balance between share gain and profitability is a challenge for all PC vendors.

Dell achieved five consecutive quarters of year-on-year global shipment growth, as shipments increased 1.4 per cent in 2Q17. Dell has put a high priority on PCs as a strategic business. Among the top three vendors, Dell is the only vendor that can supply the integrated IT needs to businesses under the Dell Technologies umbrella of companies.

PC shipments in EMEA totalled 17 million units in the second quarter of 2017, a 3.5 per cent decline year-on-year.


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