Soft PC Shipments in Fourth Quarter Lead to Annual Decline as HP Holds Onto Top Spot, According to IDC

  Soft PC Shipments in Fourth Quarter Lead to Annual Decline as HP Holds Onto
  Top Spot, According to IDC

Business Wire

FRAMINGHAM, Mass. -- January 10, 2013

Worldwide PC shipments totaled 89.8 million units in the fourth quarter of
2012 (4Q12), down 6.4% compared to the same quarter in 2011 and worse than the
forecasted decline of 4.4%, according to the International Data Corporation
(IDC) Worldwide Quarterly PC Tracker. Although the quarter marked the
beginning of a new stage in the PC industry with the launch of Windows 8, its
impact did not quickly change recently sluggish PC demand, and the PC market
continued to take a back seat to competing devices and sustained economic
woes. As a result, the fourth quarter of 2012 marked the first time in more
than five years that the PC market has seen a year-on-year decline during the
holiday season.

The lackluster fourth quarter results were not entirely surprising given the
spate of challenges the PC market faced over the course of 2012. IDC had
expected the second half of 2012 to be difficult. Consumers as well as PC
vendors and distribution channels continued to be diverted from PC sales by
ongoing demand for tablets and smartphones. In addition, questions about the
use of touch on Windows PCs vs. tablets slowed commercial spending on PCs.

"Although the third quarter was focused on the clearing of Windows 7
inventory, preliminary research indicates the clearance did not significantly
boost the uptake of Windows 8 systems in Q4," said Jay Chou, senior research
analyst with IDC's Worldwide Quarterly PC Tracker. "Lost in the shuffle to
promote a touch-centric PC, vendors have not forcefully stressed other
features that promote a more secure, reliable and efficient user experience.
As Windows 8 matures, and other corresponding variables such as Ultrabook
pricing continue to drop, hopefully the PC market can see a reset in both
messaging and demand in 2013."

"As anticipated, the U.S. market had a rough ending, dropping 4.5% in the
fourth quarter and contributing to a decline of 7% for the full year 2012,"
said David Daoud, research director, IDC U.S. Quarterly PC Tracker. "Consumers
expected all sorts of cool PCs with tablet and touch capabilities. Instead,
they mostly saw traditional PCs that feature a new OS (Windows 8) optimized
for touch and tablet with applications and hardware that are not yet able to
fully utilize these capabilities. Despite a generally weak performance, some
leading brands managed do to well relative to the market. HP, Lenovo, Asus,
and Samsung were among the top performers, taking advantage of some consumer
interest in Windows 8, and a push to build up their presence ahead of 2013."

Regional Highlights

United States – The U.S. market struggled in the fourth quarter of 2012,
although to a lesser extent than expected given the channel replenishment
activity that occurred in December. Some consumer activity took place in
conjunction with the release of Windows 8. However, limitations in product
offerings, in particular for touch screen Tablet PCs, led consumers to once
again delay purchases. Consumer-focused vendors like HP and Asian majors like
Lenovo, Asus, and Samsung managed strong performances, partly in response to
modest consumer demand, and partly due to channel activity in December ahead
of the anticipated 1H13 Windows 8 push. The rest of the industry continued to
take a wait-and-see approach as consumer attitudes toward Windows 8 are
clarified.

EMEA – The EMEA PC market performed in line with expectations in 4Q12, with
shipments declining at a mid single-digit rate from a year ago. Although
sell-in of Windows 8 systems accelerated by early December, helped by the new
Ultra Slim offerings, consumers continued to shun PC purchases in favor of
attractively priced tablets and smartphones, particularly during the
end-of-year Christmas season. Commercial purchases also remained weak,
softened by persisting uncertainty in the economic situation across the
region.

Japan – Japan registered growth that was slightly positive, but still several
points below forecast. Consumer demand was expected to be weak as the first
batch of Windows 8 machines was markedly more expensive than previous
generation models. However, the impending ending of Windows XP support helped
to boost commercial volume, where companies have been steadily upgrading to
Windows 7 for the past several quarters.

Asia/Pacific (excluding Japan) – The Asia/Pacific region came in slightly
below forecasts, as channels in most countries focused on clearing out
existing Windows 7 inventory before bringing in fresh Windows 8 stock. China
was not too far off target, though ongoing sluggishness in the economy as well
as a slowdown in public sector projects kept the PC market there suppressed
this quarter.

Vendor Highlights

HP continued to defend its top position in IDC's worldwide ranking, recovering
somewhat from past weakness in key markets. An aggressive push for Windows 8
volume helped the vendor make gains in Asia/Pacific and its home turf in the
U.S. HP struggled in EMEA but posted the first year-over-year growth in
Asia/Pacific in four quarters. Total volume was nearly flat from a year ago,
but better than the overall market.

Lenovo outpaced the market with growth of over 8%. Volume reached a new
record-high of more than 14 million units, with continued success in channel
wins in the U.S. and EMEA. Despite the positive performance, Lenovo's gains
remained significantly smaller than several quarters ago when the company was
besting market growth by nearly 30%.

Dell continued to lose ground as it faces aggressive competition from other
leaders and looks for better margins. Worldwide shipments were down over 20%
year over year – faster than declines over the past several years – with U.S.
volume declining almost as much. The firm did manage sequential growth in most
other markets.

Acer Group, like a few other vendors, remains heavily dependent on consumer
spending. As a result, it has continued to suffer as consumers focus on other
products. At the same time, Acer's cautious approach to the Windows 8
transition has contributed to slower notebook shipments.

ASUS held onto its top 5 spot globally and stretched the distance between
itself and other consumer-focused vendors with growth of 5.6% year on year.
The firm racked-up strong gains across many regions, where its often
innovative yet price-conscious offerings still managed to take root in spite
of an increasingly tough landscape.


Top 5 Vendors, Worldwide PC Shipments, Fourth Quarter 2012 (Preliminary)
(Units Shipments are in thousands)
                                                         
                 4Q12          4Q12        4Q11          4Q11        4Q12/4Q11
Vendor        Shipments   Market    Shipments   Market    Growth
                               Share                     Share
                                                                     
HP               15,023        16.7%       15,113        15.8%       -0.6%
Lenovo           14,105        15.7%       13,040        13.6%       8.2%
Dell             9,482         10.6%       11,967        12.5%       -20.8%
Acer Group       6,959         7.8%        9,692         10.1%       -28.2%
ASUS             6,467         7.2%        6,126         6.4%        5.6%
                                                                     
Others           37,753        42.0%       39,974        41.7%       -5.6%
                                                                     
All              89,789        100.0%      95,913        100.0%      -6.4%
Vendors

Source: IDC Worldwide Quarterly PC Tracker, January 10, 2013

Table notes follow the last table

In addition to the table above, a graphic showing the relative market shares
of the top 5 PC vendors over the previous five quarters is available on
IDC.com. The chart is intended for public use in online news articles and
social media. Instructions on how to embed this graphic can be found by
viewing this press release on IDC.com.


Top 5 Vendors, United States PC Shipments, Fourth Quarter 2012 (Preliminary)
(Units Shipments are in thousands)
                                                         
                4Q12          4Q12         4Q11          4Q11        4Q12/4Q11
Vendor       Shipments   Market     Shipments   Market    Growth
                              Share                      Share
                                                                     
1. HP           4,797         27.0%        4,266         23.0%       12.4%
2. Dell         3,475         19.6%        4,166         22.4%       -16.6%
3. Apple        2,030         11.4%        2,033         10.9%       -0.2%
4. Lenovo       1,504         8.5%         1,348         7.3%        11.6%
5.              1,256         7.1%         1,900         10.2%       -33.9%
Toshiba
                                                                     
Others          4,685         26.4%        4,862         26.2%       -3.6%
                                                                     
Total           17,747        100.0%       18,575        100.0%      -4.5%

Source: IDC Worldwide Quarterly PC Tracker, January 10, 2013

Table notes follow the last table


Top 5 Vendors, Worldwide PC Shipments, 2012 (Preliminary)
(Units Shipments are in thousands)
                                                         
                 2012          2012        2011          2011        2012/2011
Vendor        Shipments   Market    Shipments   Market    Growth
                               Share                     Share
                                                                     
1. HP            58,129        16.5%       62,321        17.1%       -6.7%
2. Lenovo        52,448        14.9%       44,016        12.1%       19.2%
3. Dell          38,718        11.0%       44,278        12.2%       -12.6%
4. Acer          33,494        9.5%        37,073        10.2%       -9.7%
Group
5. ASUS          24,134        6.8%        20,619        5.7%        17.0%
                                                                     
Others           145,498       41.3%       155,580       42.8%       -6.5%
                                                                     
All              352,421       100.0%      363,887       100.0%      -3.2%
Vendors

Source: IDC Worldwide Quarterly PC Tracker, January 10, 2013

Table notes follow the last table


Top 5 Vendors, United States PC Shipments, 2012 (Preliminary)
(Units Shipments are in thousands)
                                                         
                2012          2012         2011          2011        2012/2011
Vendor       Shipments   Market     Shipments   Market    Growth
                              Share                      Share
                                                                     
1. HP           17,856        26.8%        18,587        26.0%       -3.9%
2. Dell         14,062        21.1%        15,898        22.2%       -11.5%
3. Apple        7,585         11.4%        7,656         10.7%       -0.9%
4. Lenovo       5,278         7.9%         4,706         6.6%        12.2%
5.              4,593         6.9%         6,670         9.3%        -31.1%
Toshiba
                                                                     
Others          17,150        25.8%        18,033        25.2%       -4.9%
                                                                     
Total           66,524        100.0%       71,550        100.0%      -7.0%

Source: IDC Worldwide Quarterly PC Tracker, January 10, 2013

Table Notes:

  *Some IDC estimates prior to financial earnings reports.
  *Shipments include shipments to distribution channels or end users. OEM
    sales are counted under the vendor/brand under which they are sold.
  *PCs include Desktops, Portables, Mini Notebooks and do not include
    handhelds, workstations, x86 Servers and Media Tablets (i.e. iPad and
    Android-based Tablets). Data for all vendors are reported for calendar
    periods.

IDC's Worldwide Quarterly PC Tracker gathers PC market data in over 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 knagamine@idc.com.

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
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
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can learn more about IDC by visiting www.idc.com.

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Contact:

IDC
Jay Chou, 650-350-6464
jchou@idc.com
or
David Daoud, 508-988-7502
ddaoud@idc.com
or
Loren Loverde, 650-350-6470
lloverde@idc.com
or
Michael Shirer, 508-935-4200
press@idc.com
 
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