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Gartner Says Worldwide PC Shipments Declined 1.4 Percent in First Quarter of 2018
[April 11, 2018]

Gartner Says Worldwide PC Shipments Declined 1.4 Percent in First Quarter of 2018


Worldwide PC shipments totaled 61.7 million units in the first quarter of 2018, a 1.4 percent decline from the first quarter of 2017, according to preliminary results by Gartner (News - Alert), Inc. The PC market experienced a 14th consecutive quarter of decline, dating back to the second quarter of 2012.

Asia/Pacific and the U.S. experienced declining shipments, while other regions saw some minimal growth, but it was not enough to drive overall growth for the PC industry. In the first quarter of 2018, PC shipments in Asia/Pacific declined 3.9 percent compared with the same period last year, while shipments in the U.S. decreased 2.9 percent.

"The major contributor to the decline came from China, where unit shipments declined 5.7 percent year over year," said Mikako Kitagawa, principal analyst at Gartner. "This was driven by China's business market, where some state-owned and large enterprises postponed new purchases or upgrades, awaiting new policies and officials' reassignments after the session of the National People's Congress in early March.

"In the first quarter of 2018, there was some inventory carryover from the fourth quarter of 2017," Ms. Kitagawa said. "At the same time, vendors were cautious in overstocking due to the upcoming release of new models in the second quarter of 2018 with Intel's new eighth-generation core processors."

The top three vendors - HP, Lenovo and Dell (News - Alert) - accounted for 56.9 percent of global PC shipments in the first quarter of 2018, compared with 54.5 percent of shipments in the first quarter of 2017 (see Table 1). Dell experienced the strongest growth rate among the top six vendors worldwide, as its shipments increased 6.5 percent.





 

                       

Table 1

Preliminary Worldwide PC Vendor Unit Shipment Estimates for 1Q18 (Thousands of Units)

Company

       

1Q18
Shipments

   

1Q18 Market
Share (%)

   

1Q17
Shipments

   

1Q17 Market
Share (%)

   

1Q18-1Q17
Growth (%)

HP Inc. 12,856 20.8 12,505 20.0 2.8
Lenovo 12,346 20.0 12,305 19.7 0.3
Dell 9,883 16.0 9,277 14.8 6.5
Apple (News - Alert) 4,264 6.9 4,199 6.7 1.5
Asus 3,900 6.3 4,458 7.1 -12.5
Acer (News - Alert) Group 3,828 6.2 4,189 6.7 -8.6
Others 14,609 23.7 15,637 25.0 6.6
Total         61,686     100.0     62,569     100.0     -1.4

Notes: Data includes desk-based PCs, notebook PCs and ultramobile premiums (such as Microsoft (News - Alert) Surface), but not Chromebooks or iPads. All data is estimated based on a preliminary study. Final estimates will be subject to change. The statistics are based on shipments selling into channels. Numbers may not add up to totals shown due to rounding.
Source: Gartner (April 2018)

HP Inc.'s worldwide PC shipments increased 2.8 percent in the first quarter of 2018 versus the same period last year. In EMEA, HP Inc. recorded double-digit growth in both desktop and mobile PCs. This was contrasted with a small decline in other regions. HP Inc. was adversely impacted by declining demand in the U.S., which generally accounts for one-third of its total shipments.

Lenovo's global PC shipments remained flat in the first quarter of 2018. Lenovo achieved 6 percent growth in EMEA and double-digit shipment growth in Latin America. However, in Asia/Pacific (its largest market), PC shipments declined 4 percent.

After record holiday sales for consumer and gaming products in the fourth quarter of 2017, Dell continued to perform well in the first quarter of 2018. With double-digit shipment increases in EMEA, North America and Latin America, Dell grew in all regions except Asia/Pacific. Desktop and mobile PCs grew in equal measures, showing Dell's strength in the business segment.

Rising ASPs

The average selling prices (ASPs) of PCs continue to rise. Acknowledging deceleration in the smartphone market, and uncertainty in PC replacement demand, component companies remain cautious about expanding their production capabilities. Therefore, persistent component shortages and a rising bill of materials continue to create an environment conductive to higher prices.

"In contrast to other DRAM-related price spikes, PC vendors are not reacting by reducing DRAM content. Rather they have passed the cost increase to consumers," Ms. Kitagawa said. "With fewer people buying new machines, manufacturers need to get the highest profit margin from each sale. To do that, they are raising the selling points and focusing on customer experience or perception of value."

Regional Overview

In the U.S., PC shipments totaled 11.8 million units in the first quarter of 2018, a 2.9 percent decrease from the first quarter of 2017. Dell moved into the No. 1 position in the U.S. based on shipments, as its market share increased to 29.1 percent. HP Inc. moved into the No. 2 position as its shipments declined 4.8 percent, and its market share totaled 28.4 percent in the first quarter of 2018.

 

                     

Table 2

Preliminary U.S. PC Vendor Unit Shipment Estimates for 1Q18 (Thousands of Units)

Company

     

1Q18
Shipments

   

1Q18 Market
Share (%)

   

1Q17
Shipments

   

1Q17 Market
Share (%)

   

1Q18-1Q17
Growth (%)

Dell 3,440 29.1 3,198 26.2 7.6
HP Inc. 3,363 28.4 3,532 29.0 -4.8
Lenovo 1,632 13.8 1,714 14.1 -4.8
Apple 1,491 12.6 1,484 12.2 0.5
Acer Group 321 2.7 429 3.5 -25.1
Others 1,586 13.4 1,836 15.1 -13.6
Total       11,833     100.0     12,193     100.0     -2.9

Notes: Data includes desk-based PCs, notebook PCs and ultramobile premiums (such as Microsoft Surface), but not Chromebooks or iPads. All data is estimated based on a preliminary study. Final estimates will be subject to change. The statistics are based on shipments selling into channels. Numbers may not add up to totals shown due to rounding.
Source: Gartner (April 2018)

PC shipments in EMEA totaled 18.6 million units in the first quarter of 2018, a 1.7 percent increase year over year. Enterprise shipments increased as many Windows 10 projects that were put on hold in 2017 began to be implemented. The fast approach of the compliance deadline for the General Data Protection Regulation (GDPR) in Europe, as well as earlier reports of cybersecurity breaches, made security a strong priority in the hardware refresh cycle among enterprises. Eurasia continued to be a bright spot for EMEA, as several countries, such as Russia, Ukraine and Kazakhstan, saw strong demand in the first quarter of 2018.

PC shipments in Asia/Pacific totaled 21.9 million units in the first quarter of 2018, a 3.9 percent decline from the first quarter of 2017. As previously mentioned, the PC market in China drove the decline in Asia/Pacific. There is no significant sign of strong upgrading to the special version of Windows 10 from the Chinese government institutions. Consumer demand was weak as most buyers already took advantage of the aggressive promotions offered in the fourth quarter of 2017.

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.

About Gartner

Gartner, Inc. (NYSE: IT), is the world's leading research and advisory company and a member of the S&P 500. We equip business leaders with indispensable insights, advice and tools to achieve their mission-critical priorities and build the successful organizations of tomorrow.

Our unmatched combination of expert-led, practitioner-sourced and data-driven research steers clients toward the right decisions on the issues that matter most. We're trusted as an objective resource and critical partner by more than 12,000 organizations in more than 100 countries-across all major functions, in every industry and enterprise size.

To learn more about how we help decision makers fuel the future of business, visit www.gartner.com


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