Worldwide PC Shipment Declines As Market Anticipate Windows 8 Arrival


New Delhi: Worldwide PC shipments totaled 87.5 million units in the third quarter of 2012, a decline of 8.3 percent compared with the third quarter of 2011, according to preliminary results by Gartner, Inc.

 "A continuing slowdown in consumer PC shipments played a big part in the overall PC market decline," said Mikako Kitagawa, principal analyst at Gartner. "The third quarter was also a transitional quarter before Microsoft's Windows 8 operating system release, so shipments were less vigorous as vendors and their channel partners liquidated inventory.

 "Retailers were conservative in placing orders as they responded to weak back-to-school sales. By the end of September, retailers were focused on clearing out inventory in advance of the Windows 8 launch later this month," Ms. Kitagawa said. "On the professional side, there was minimum impact from Windows 8 in the quarter because the professional market will not adopt Windows 8 PCs immediately after the release."

 Lenovo took the No. 1 position in worldwide PC shipments for the first time in the company's history, as its share increased to 15.7 percent, while HP's global PC share was at 15.5 percent. In addition to acquiring other vendors, Lenovo has also taken an aggressive position on pricing, especially in the professional market. As a result, Lenovo has achieved significant market share gains over the last two years, exceeding regional average growth rates across all regions.

Although it finished the quarter very close to Lenovo, HP has given up the top PC vendor position for the first time since the third quarter of 2006. HP is currently restructuring its device business, including PCs, tablets and printers. HP's main concern is achieving a good balance between market share gain and margin protection.

 Dell was the No. 3 vendor in PC shipments worldwide in the third quarter of 2012. While Dell suffered a steeper shipment decline than the worldwide average, it was less impacted by the upcoming release of Windows 8 because of its strong focus in the professional market. Dell continues to gradually transform itself from a PC/device supplier to a solution provider.

 In the U.S., PC shipments totaled 15.3 million units in the third quarter of 2012, a 13.8 percent decline compared with the same period last year.

 "The third quarter has historically been driven by back-to-school sales, but U.S. PC shipments did not increase, not even sequentially, from the second quarter of 2012. Channels were conservative in placing orders," Ms. Kitagawa said. "Professional PC shipments in the U.S. began slowing in the second quarter of this year, and they continued the trend in the third quarter. The results indicate that the replacement peak may have passed in the professional sector."

 The lack of appeal and innovation in PCs combined with a challenging economic environment diverted user spending elsewhere. Western Europe saw very weak shipments across all countries, as retailers reduced Windows 7 inventory in anticipation of Windows 8 products.

 In Asia/Pacific, PC shipments reached 31.3 million units in the third quarter of 2012, a 5.6 percent decline from the third quarter of 2011. Weak demand was brought about as potential buyers chose to reign in or delay their purchases. China's slowing economy was more acutely felt in the region in the third quarter, creating an even more conservative approach to spending. Although there were government PC initiatives in India and China to drive PC sales, they failed to offset the general market weakness.

 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.