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[Worldwide PC Shipments Declined 3.6% in Q3 2017 -Gartner]

Oct 2017

Worldwide PC Shipments Declined 3.6% in Q3 2017 -Gartner

Worldwide PC shipments totaled 67 million units in the third quarter of 2017, a 3.6% decline from Q3 of 2016, according to preliminary results by Gartner, Inc. This marks the 12th consecutive quarter of declining global PC shipments.

US market is the most shrinking

While there were signs of stabilization in the PC industry in key regions, including EMEA, Japan and Latin America, the relatively stable results were offset by the U.S. market, which saw a 10% year-over-year decline in part because of a very weak back-to-school sales season.

Business PC demand, led by Windows 10 upgrades, continued to drive PC shipments across all regions, but its refresh schedule varies by region. Traditional promotions, such as Back-to-School sales, are no longer an effective growth driver for PC shipments.

Shortages leading to price hike

There are ongoing component shortages, with memory chips shortages getting particularly worse during the third quarter of the year compared with the first half of 2017.

The component price hike impacted the consumer PC market as most vendors generally pass the price hike on to consumers, rather than absorbing the cost themselves.

The Top PC Vendors

In the third quarter of 2017, HP and Lenovo were in a virtual tie for the top spot in the PC market based on shipments.

HP 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 secured positive growth for the fifth consecutive quarter.

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.

However, HP is in an upward trend, as it has experienced five consecutive quarters of global PC growth, while Lenovo is in a downward trend with declining shipments in eight of the last 10 quarters.

Coming in 3rd place, 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.

PC shipments in EMEA totaled 19 million units in the third quarter of 2017, a 1.1% decline year over year.

In Asia/Pacific, PC shipments reached 24 million units in the third quarter of 2017, down 2.1% from the same period last year. The PC market in China is declined by 5% in Q3 2017.


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