Lenovo Overtakes HP as the Top PC Vendor While U.S. Shipments Stabilize in the Second Quarter of 2013, According to IDC

  Lenovo Overtakes HP as the Top PC Vendor While U.S. Shipments Stabilize in
  the Second Quarter of 2013, According to IDC

Business Wire

FRAMINGHAM, Mass. -- July 10, 2013

Worldwide PC shipments totaled 75.6 million units in the second quarter of
2013 (2Q13), down -11.4% compared to the same quarter in 2012 but slightly
better than expected, according to the International Data Corporation (IDC)
Worldwide Quarterly PC Tracker. Total shipments were effectively right on
forecasts of 75.4 million and growth of -11.7%, although Europe, Middle East,
and Africa (EMEA) and Asia/Pacific (excluding Japan)(APeJ) were a few points
below expectations with the difference made up in the United States.

The numbers reflect a market that is still struggling with the transition to
touch-based systems running Windows 8 as well as justifying ultrabook prices
in the face of economic pressures and competition from tablets and other
devices. A silver lining is that a number of vendors and regions seemed to be
focused on inventory reduction during the second quarter, which could reflect
planned launches of new models as well as lower inventory going into the
second half of the year. However, it also reflects some caution among vendors
and the channels in the face of remaining challenges for PCs and more than a
year of declining shipments.

"With second quarter growth so close to forecast, we are still looking for
some improvement in growth during the second half of the year," said Jay Chou,
Senior Analyst, IDC Worldwide PC Tracker. "Slower growth in Europe and China
reflect the risks, while the improved U.S. outlook reflects potential
improvement. Still, the weakness in emerging markets is a threat to a core
long-term growth area. In addition, while efforts by the PC ecosystem to bring
down price points and embrace touch computing should make PCs more attractive,
a lot still needs to be done in launching attractive products and addressing
competition from devices like tablets."

One positive sign is that HP and Dell saw growth improve over recent quarters,
possibly indicating stronger performance in coming quarters and reflecting
more commercial replacements as we get closer to the end of Windows XP
support. Market leader Lenovo also grew faster than the market (as well as
faster than HP and Dell) although Lenovo growth slipped below zero at -1.4%
and was down from prior quarters. Slow growth for Lenovo reflects the
company's focus on China, which represents over 50% of Lenovo shipments, and
where short-term economic and inventory hurdles cut into 2Q13 shipments.

"The U.S. market is beginning to reflect some of the Windows XP to Windows 7
transition we've been expecting in the commercial PC space, as evidenced by
the strong growth in the enterprise-focused Dell PC business," said Bob
O'Donnell, Program Vice President, Clients and Displays. "We're also starting
to see more stabilization in shipments, which we think is a reflection of PC
lifetimes finally starting to even out after a long period of gradual
increase. The end result should be more PC replacements, even if consumers and
companies are selective in making replacements and wait until PCs are older
before replacing them."

Regional Highlights

United States – Posting a decline in shipments of just -1.9% was a substantial
improvement from double-digit declines in three of the past four quarters.
While positive, this recovery was enabled by lower volume in 2Q12 and
supported by a marked reduction in old inventory that enabled a more
aggressive channel uptake. Additionally, wider selections of Windows 8 models
offered by top vendors and migration from Window XP to Win7 helped to push
volume higher than anticipated. Dell managed to climb above 3.8 million units
for the first time since 2011, gaining a few points of share in the U.S. PC
market. HP maintained its leadership position, growing roughly even with the
market. These two vendors represented nearly 50% of total U.S. PC shipments in
2Q13.

EMEA – The PC market in EMEA maintained negative trends as expected in the
second quarter. Shipments remained constrained amid continued weakness in
consumer demand, while softness persisted in the commercial market, as
anticipated, due to unfavorable economic conditions and lack of major
renewals. Portable PC shipments contracted the most, impacted by slow demand,
which continued to focus on tablets, while high inventory levels inhibited
sell-in during the first two months of the quarter leading vendors to focus on
stock depletion. June did not bring much boost in sell-in levels, as high
inventory persisted in some countries, while orders from retailers remained
cautious ahead of an uncertain outlook for the back-to-school period. As a
result, the traditionally stronger June replenishment did not occur, and
vendors and channel players remained focused on tighter inventory control
instead.

Japan – Although the market continued to shrink and consumer sentiment
remained weak, market growth came in as expected.

Asia/Pacific (excluding Japan) – Although countries outside of China were
fairly in line with forecasts, with India maintaining an encouraging
trajectory, overall PC shipments in the region fell slightly below forecast
due to China. Weak sell-in to China during April and May constrained
shipments. Although June shipments in China improved, expectations for the
third quarter are being lowered to reflect remaining inventory as well as
economic pressures.

Vendor Highlights

Lenovo took the top PC vendor title, continuing its streak of gains following
channel expansion and solid product development. In 2Q13, Lenovo continued to
make impressive gains outside of APeJ. However, the headwinds in China
continued to affect its home turf significantly. Lenovo ended the quarter with
a double-digit decline in Asia/Pacific (excluding Japan). Overall growth has
slowed from prior quarters, and slipped into negative territory this quarter,
but still outpaced the market and top competitors.

HP slipped to second place, but growth improved from recent quarters. The
company received a strong boost from shipments to India as part of large
education projects. Shipments continued to decline significantly in EMEA,
although the company's U.S. business stabilized a bit after a significant
decline in the first quarter of 2013.

Dell despite ongoing uncertainty surrounding its restructuring, the firm
performed above market with a decline of -4.5%. As with HP, this was a
significant improvement from the past year that was aided by improving growth
in the United States. The firm continued to seek opportunities at all levels
of the pricing spectrum and managed to perform above market in all key regions
except Asia/Pacific (excluding Japan).

Acer Group continued to see substantial declines in shipments across regions
as the company was strongly impacted by weak consumer demand. Although it has
been aggressive in expanding more premium offerings to offset falling mini
notebook sales, Acer has been hampered by slow demand for pricier ultrabooks.

ASUS shipments were constrained by inventory clearance challenges in key
regions. Despite its focus on innovative designs, its relative weakness in the
commercial space coupled with an intrinsically depressed consumer market led
the vendor to see a decline of over 20%.


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

                 2Q13          2Q13        2Q12          2Q12        2Q13/2Q12
Vendor         Shipments   Market    Shipments   Market    Growth
                               Share                     Share
1. Lenovo      12,619      16.7%     12,802      15.0%     -1.4%
2. HP            12,378        16.4%       13,414        15.7%       -7.7%
3. Dell          9,230         12.2%       9,633         11.3%       -4.2%
4. Acer          6,226         8.2%        9,241         10.8%       -32.6%
Group
5. ASUS          4,590         6.1%        5,820         6.8%        -21.1%
                                                                     
Others           30,589        40.4%       34,464        40.4%       -11.2%
                                                                     
Total            75,632        100.0%      85,374        100.0%      -11.4%

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

Table notes follow the last table.

In addition to the table above, a graphic showing worldwide PC market share
for the top 5 vendors over the previous five quarters is available here. 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, Second Quarter 2013 (Preliminary)
(Units Shipments are in thousands)

                 2Q13          2Q13        2Q12          2Q12        2Q13/2Q12
Vendor         Shipments   Market    Shipments   Market    Growth
                               Share                     Share
1. HP          3,955       25.3%     4,125       25.8%     -4.1%
2. Dell          3,801         24.3%       3,594         22.5%       5.8%
3. Apple         1,806         11.5%       1,815         11.4%       -0.5%
4. Lenovo        1,530         9.8%        1,280         8.0%        19.6%
5. Acer          909           5.8%        1,129         7.1%        -19.5%
Group
                                                                     
Others           3,650         23.3%       4,019         25.2%       -9.2%
                                                                     
Total            15,650        100.0%      15,961        100.0%      -1.9%

Source: IDC Worldwide Quarterly PC Tracker, July 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
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About IDC

IDC is the premier global provider of market intelligence, advisory services,
and events for the information technology, telecommunications, and consumer
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Contact:

International Data Corporation
Jay Chou, 650-350-6464
jchou@idc.com
or
Loren Loverde, 305-351-3115
lloverde@idc.com
or
Bob O’Donnell, 650-350-6482
bodonnell@idc.com
or
Michael Shirer, 508-935-4200
press@idc.com
 
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