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PC Outlook Remains Cautious, Despite Modest Third Quarter Gains, According to IDC
[November 25, 2014]

PC Outlook Remains Cautious, Despite Modest Third Quarter Gains, According to IDC


FRAMINGHAM, Mass. --(Business Wire)--

Worldwide PC shipments are expected to fall by -2.7% in 2014, an improvement from the previous forecast of -3.7%, according to the International Data Corporation (IDC) Worldwide Quarterly PC Tracker. Although third quarter results were a few points ahead of forecast with shipments down only -0.5% from the prior year, most regions and market participants saw this as a short-term gain rather than as a sign of stronger growth in the medium- or long-term.

Mature regions continue to grow while a rebound in emerging regions has taken longer (due to a later impact from tablets as well as slower economics and commercial replacements). Western Europe and Japan performed better than expected in the third quarter, but the gains were driven by a rebound from last year and short-term factors such as building fourth quarter inventory earlier in the year and continuing Windows XP replacement activity. Despite the relative short-term strength, mature regions are expected to see PC shipments decline again in 2015 and contract slightly through the end of the forecast.

The consumer market came in slightly ahead of projections in the third quarter, but shipments are still expected to decline -5% in 2014. Pressure from tablets seems to be waning as penetration rises and tablets move to smaller sizes and lower price points. However, competition for disposable income from smartphones and phablets is rising. In addition, the market was boosted in the third quarter by factors such as a rise in low-cost systems in many markets and a rebound in Western Europe, which helped restore volume to earlier levels but not without cost in value of shipments.

"The expansion of entry-level models, encouraged by Windows 8 + Bing systems, has helped improve consumer volume in recent quarters and should extend past the fourth quarter," said Jay Chou, Senior Research Analyst, Worldwide PC Trackers. "Chromebooks are similarly boosting the low-end commercial segment. However, the market is still recovering to near stable volumes with no significant growth in the forecast."

"In the best case for PCs, we'd see a significant wave of replacements as users who spent on phones and tablets in recent years decide they really need to update their PC. Features like touch or convertibility, as well as Windows 10 could make systems more versatile and appealing, along with lower prices," said Loren Loverde, Vice President, Worldwide PC Trackers. "However, we've seen steady progress on prices and new designs over the past year, and replacements are stabilizing PC shipments but not boosting total volume. Going forward, as younger generations become more mobile and Web oriented, and emerging regions in particular prioritize converged devices (or economy in number of devices to purchase), the PC market will continue to face tough competition and be more focused on replacements, with limited potential for growth."

PC Shipments by Region and Product Category, 2013-2018 (Shipments in millions)





                                         
Region         Product Category         2013         2014*         2018*
Emerging Markets         Desktop PC         85.7         80.2         76.4
Emerging Markets Portable PC 96.2 83.7 85.5
Emerging Markets Total PC 181.9 163.9 161.9
 
Mature Markets Desktop PC 51.1 53.3 44.8
Mature Markets Portable PC 82.2 89.4 85.2
Mature Markets Total PC 133.2 142.7 130.0
 
Worldwide Desktop PC 136.7 133.6 121.2
Worldwide Portable PC 178.4 173.1 170.7
Worldwide         Total PC         315.1         306.7         291.9
 

Source (News - Alert): IDC Worldwide Quarter PC Tracker, November 25, 2014
* Forecast data
See Table and Taxonomy Notes below.

In addition to the table above, an interactive graphic illustrating worldwide Desktop and Portable PC shipments and Total PC market growth for 2012-2015 is available here. Instructions on how to embed this graphic into online news articles and social media can be found by viewing this press release on IDC.com.

PC Shipment Growth by Region and Product Category, 2013-2018

                                         
Region         Product Category         2013         2014*         2018*
Emerging Markets         Desktop PC         -9.6%         -6.3%         -0.9%
Emerging Markets Portable PC -12.9% -13.0% 2.4%
Emerging Markets Total PC -11.3% -9.9% 0.8%
 
Mature Markets Desktop PC -4.8% 4.4% -2.3%
Mature Markets Portable PC -9.3% 8.8% -0.2%
Mature Markets Total PC -7.6% 7.1% -0.9%
 
Worldwide Desktop PC -7.8% -2.3% -1.4%
Worldwide Portable PC -11.3% -2.9% 1.1%
Worldwide         Total PC         -9.8%         -2.7%         0.0%
 

Source: IDC (News - Alert) Worldwide Quarter PC Tracker, November 25, 2014
* Forecast data

Table Note: Mature Markets include U.S., Western Europe, Japan, and Canada. Emerging Markets includes Asia/Pacific (excluding Japan), Latin America, Central and Eastern Europe (CEE), Middle East, and Africa (MEA).

Taxonomy Note: PCs include Desktop, Mini Notebook and other Portable PCs which possess non-detachable keyboards, and do not include handhelds or tablets such as the Apple iPad, Microsoft (News - Alert) Surface Pro, or Android Tablets

IDC's Worldwide Quarterly PC Tracker gathers PC market data in more than 80 countries by vendor, form factor, brand, processor brand and speed, sales channel and user segment. The research includes historical and forecast trend analysis as well as price band and installed base data. For more information, or to subscribe to the research, please contact Kathy Nagamine at 650-350-6423 or [email protected].

About IDC Trackers

IDC Tracker products provide accurate and timely market size, vendor share, and forecasts for hundreds of technology markets from more than 100 countries around the globe. Using proprietary tools and research processes, IDC's Trackers are updated on a semiannual, quarterly, and monthly basis. Tracker results are delivered to clients in user-friendly excel deliverables and on-line query tools. The IDC Tracker Charts app allows users to view data charts from the most recent IDC Tracker products on their iPhone and iPad.

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community to make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. In 2014, IDC celebrates its 50th anniversary of providing strategic insights to help clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading Technology media, Research, and Events Company. You can learn more about IDC by visiting www.idc.com.

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