PC Shipments Post the Steepest Decline Ever in a Single Quarter, According to IDC

  PC Shipments Post the Steepest Decline Ever in a Single Quarter, According
  to IDC

Business Wire

FRAMINGHAM, Mass. -- April 10, 2013

Worldwide PC shipments totaled 76.3 million units in the first quarter of 2013
(1Q13), down -13.9% compared to the same quarter in 2012 and worse than the
forecast decline of -7.7%, according to the International Data Corporation
(IDC) Worldwide Quarterly PC Tracker. The extent of the year-on-year
contraction marked the worst quarter since IDC began tracking the PC market
quarterly in 1994. The results also marked the fourth consecutive quarter of
year-on-year shipment declines.

Despite some mild improvement in the economic environment and some new PC
models offering Windows 8, PC shipments were down significantly across all
regions compared to a year ago. Fading Mini Notebook shipments have taken a
big chunk out of the low-end market while tablets and smartphones continue to
divert consumer spending. PC industry efforts to offer touch capabilities and
ultraslim systems have been hampered by traditional barriers of price and
component supply, as well as a weak reception for Windows 8. The PC industry
is struggling to identify innovations that differentiate PCs from other
products and inspire consumers to buy, and instead is meeting significant
resistance to changes perceived as cumbersome or costly.

"At this point, unfortunately, it seems clear that the Windows 8 launch not
only failed to provide a positive boost to the PC market, but appears to have
slowed the market," said Bob O'Donnell, IDC Program Vice President, Clients
and Displays. "While some consumers appreciate the new form factors and touch
capabilities of Windows 8, the radical changes to the UI, removal of the
familiar Start button, and the costs associated with touch have made PCs a
less attractive alternative to dedicated tablets and other competitive
devices. Microsoft will have to make some very tough decisions moving forward
if it wants to help reinvigorate the PC market."

The impact of slow demand has been magnified by the restructuring and
reorganizing efforts impacting HP and Dell. Lenovo remains a notable exception
as it continues to execute on a solid "attack" strategy. Mid- and bottom-tier
vendors are also struggling to identify growth markets within the U.S. Among
the most vulnerable group of vendors are the whitebox system builders, which
are undergoing consolidation that is affecting shipments as well as the
distribution sector.

"Although the reduction in shipments was not a surprise, the magnitude of the
contraction is both surprising and worrisome," said David Daoud, IDC Research
Director, Personal Computing. "The industry is going through a critical
crossroads, and strategic choices will have to be made as to how to compete
with the proliferation of alternative devices and remain relevant to the
consumer. Vendors will have to revisit their organizational structures and go
to market strategies, as well as their supply chain, distribution, and product
portfolios in the face of shrinking demand and looming consolidation."

Regional Highlights

United States – The U.S. market had another dismal quarter in 1Q13,
contracting -12.7% year on year, with a drop of -18.3% compared to the fourth
quarter of 2012. With total volume falling to 14.2 million, quarterly
shipments reached their lowest level since the first quarter of 2006. With
this latest figure, the U.S. is now in its tenth consecutive quarter of
year-on-year contraction (excluding a brief moment of growth – less than 2%
year on year – in 3Q11).

EMEA – As expected, Europe, Middle East and Africa (EMEA) remained
constrained, posting a stronger double-digit decline than anticipated in the
first quarter of 2013. Results fell short of expectations in the consumer
segment as softness in demand persisted amid a continued shift to tablets and
ongoing budget pressures. Meanwhile, the market response to Windows 8 and
touch-enabled devices remained slow, leading to cautious sell-in from most
vendors. Shipments in the commercial market remained constrained as predicted,
following continued economic pressure and lack of major IT renewals.

Japan – PC shipments were in line with expectations in the first quarter. Some
economic improvement is helping to support commercial replacement demand ahead
of the scheduled end of support for Windows XP next year. However, consumer
shipments remained very weak.

Asia/Pacific (excluding Japan) (APeJ) – PC shipments in APeJ declined sharply,
dropping a record -12.7% year on year, the first time the region has
experienced a double-digit decline. Although much of the earlier Windows 7
stock had cleared, a lukewarm reception toward Windows 8 hampered new
shipments. China's inactivity contributed heavily to the decline, as public
sector spending continued to be constrained.

Vendor Highlights

HP remained the top vendor, but posted a substantial double-digit decline in
shipments after an aggressive fourth quarter kept growth flat during the
holidays. HP's worldwide shipments fell more than -23% year on year in 1Q13,
with significant declines across all regions, as internal restructuring
continued to affect commercial sales. Although HP maintained its leadership
position in the United States, the company saw U.S. shipments fall -22.9% from
a year ago.

Lenovo remained second in global shipments and nearly closed the gap with HP.
Lenovo continued to outpace the market, notably expanding shipments with its
attack strategy. In the United States, Lenovo outperformed the market with
double digit year-on-year growth compared to the market's double-digit
contraction. Shipments in Asia/Pacific declined, however, keeping Lenovo's
overall growth flat.

Dell saw shipments decline by more than -10% globally and -14% in the United
States. The vendor continued to face tough competition and struggled with
customer uncertainty about the direction of its restructuring. Nevertheless,
the decline in shipments was smaller than the past few quarters, and its sales
to Asia/Pacific returned to positive growth.

Acer Group continued to see substantial declines in shipments across regions.
As the leader in Mini Notebook shipments, the vendor has been particularly
exposed to the decline in these systems. Slow consumer and SMB growth has also
taken a toll. In a sequential comparison, Acer's market share rose slightly to
8.1% in 1Q12 from 8.0% in 4Q12, halting its market share decline.

ASUS managed some growth in the United States, but saw a substantial decline
in EMEA and Asia/Pacific. The company's substantial surge in Americas
shipments in the second half of 2012 gave way to limited growth as demand
weakened.

Apple fared better than the overall U.S. market, but still saw shipments
decline as its own PCs also face competition from iPads.

Toshiba also saw shipments decline in the United States, but fared better than
the overall market, benefitting somewhat from the restructuring of market
leaders HP and Dell.


Top 5 Vendors, Worldwide PC Shipments, First Quarter 2013 (Preliminary)
(Units Shipments are in thousands)

                 1Q13          1Q13        1Q12          1Q12        1Q13/1Q12
Vendor         Shipments   Market    Shipments   Market    Growth
                               Share                     Share
1. HP          11,997      15.7%     15,726      17.7%     -23.7%
2. Lenovo        11,700        15.3%       11,705        13.2%       0.0%
3. Dell          9,010         11.8%       10,110        11.4%       -10.9%
4. Acer          6,150         8.1%        8,952         10.1%       -31.3%
Group
5. ASUS          4,363         5.7%        5,401         6.1%        -19.2%
                                                                     
Others           33,075        43.4%       36,739        41.5%       -10.0%
                                                                     
Total            76,294        100.0%      88,635        100.0%      -13.9%

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

Table notes follow the last table.


In addition to the table above, a graphic showing year-on-year shipment growth
for the worldwide PC market 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, First Quarter 2013 (Preliminary)
(Units Shipments are in thousands)

               1Q13          1Q13          1Q12          1Q12        1Q13/1Q12
Vendor       Shipments   Market      Shipments   Market    Growth
                             Share                       Share
1. HP        3,570       25.1%       4,632       28.5%     -22.9%
2. Dell        3,074         21.7%         3,590         22.1%       -14.4%
3. Apple       1,418         10.0%         1,533         9.4%        -7.5%
4. Toshiba     1,279         9.0%          1,349         8.3%        -5.2%
5. Lenovo      1,274         9.0%          1,127         6.9%        13.0%
                                                                     
Others         3,581         25.2%         4,022         24.7%       -11.0%
                                                                     
Total          14,197        100.0%        16,255        100.0%      -12.7%

Source: IDC Worldwide Quarterly PC Tracker, April 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 Workstations and do
    not include handhelds, x86 Servers and Tablets (i.e. iPad and
    Android-based Tablets with detachable keyboards). 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, available at iTunes, 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
110 countries. For more than 49 years, IDC has provided strategic insights to
help our 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.

All product and company names may be trademarks or registered trademarks of
their respective holders.

Contact:

International Data Corporation
Jay Chou, 650-350-6464
jchou@idc.com
or
Loren Loverde, 305-351-3115 or 650-350-6470
lloverde@idc.com
or
David Daoud, 508-988-7502
ddaoud@idc.com
or
Michael Shirer, 508-935-4200
press@idc.com
 
Press spacebar to pause and continue. Press esc to stop.