IHS: NOTEBOOK PC MARKET ACHIEVES SEQUENTIAL GROWTH IN Q3

(The following is a reformatted version of a press release
issued by IHS Inc. and received via electronic mail. The release
was confirmed by the sender.) 
Notebook PC Market Achieves Sequential Growth in Q3--but Annual
Plunge Continues 
El Segundo, Calif. (Oct. 30, 2013)--How far have expectations
fallen for the mobile PC business this year? 
So far that single-digit sequential growth in the third quarter
comes as the best news the notebook PC market has heard in many
months--even as shipments plunged on a year-over-year basis. The
year-over-year decline is making it increasingly apparent that
the mobile PC market is headed for a second consecutive year of
contraction in 2013, according to a new PC Dynamics brief from
IHS Inc. (NYSE: IHS). 
Mobile PC shipments worldwide are estimated to have reached 47.9
million units in the third quarter, up 6 percent from the second
quarter. This represents the largest sequential growth since two
years ago when the market rose 7 percent in the third quarter of
2011, as presented in the attached figure. 
On the other hand, the third-quarter results show the market has
now shrunk for five consecutive quarters on a year-over-year
basis, starting from the second quarter of 2012 more than one
year ago. This fifth quarter of decline, down 9 percent compared
to the same time last year, is the second-worst drop after the
sharp 14 percent loss incurred during the previous quarter. 
“Amid the onslaught of tablets, the notebook PC market now is
desperately seeking any reason for optimism--and the sequential
growth in the third quarter is offering a ray of hope,” said
Craig Stice, senior principal analyst, compute platforms for
IHS. “However, even with a respite from the sequential decline
and a few other hopeful developments, the mobile PC business is
still on track to decline for the full year of 2013. This means
the notebook market will contract for the second consecutive
year, a proposition that once would have been unthinkable for
the formerly high-flying mobile PC business.” 
Microprocessor boost 
While mobile PCs continue to be engaged in a losing battle
against tablets, several market developments appear encouraging. 
For instance, Intel’s new Haswell microprocessor as well as its
soon-to-be-released Bay Trail chip will make mobile PCs like
Ultrabooks faster and more agile while also extending battery
life--qualities that could enhance the machines’ appeal to
consumers. Even Intel rival Advanced Micro Devices has a new
lineup of processors--already released--that will compete not
only in the performance sector but also in the low-power and
entry-level-pricing markets, providing further indication that
the mobile PC space still has players actively invested in the
future of the market. 
Proxy desktop benefits 
An indirect boost could come by way of the desktop PC space,
which is expected to liven up as the Microsoft Windows XP
operating system expires in April next year and the commercial
segment then undergoes an anticipated refresh cycle. Such a
development could potentially translate into millions of
computers upgrading to a fresh operating system as well as more
advanced hardware. Any uptick in the desktop space is
potentially beneficial to the mobile market, especially if
excitement over new software and hardware spills over and
engages consumers. 
Fourth quarter showdown 
“All hopes are now pinned on the fourth quarter, which could end
up as one of the most important holiday seasons yet for the PC
industry,” Stice said. “With various new technologies launching,
the PC trade believes it is playing its best hand in years. Many
eyes will be watching to see how the rest of the year--to say
nothing of 2014--turns out.” 
Still, a hard road ahead 
The year, however, remains set to end on a disappointing note
for the overall PC market, including mobile computers. 
Although the second half of 2013 will prove stronger than the
first six months of the year, the deep damage inflicted during
the first half will make its presence felt when final results
are tallied by year-end. As a result, the global PC market is
forecast to be down again this year, repeating the decline of
2012, which had been the first in 11 years. 
For more information, please contact: 
Jonathan Cassell
Senior Manager, Editorial
jonathan.cassell@ihs.com
Direct: + 1 408 654 1714
Mobile: + 408 921 3754 
Or 
IHS Media Relations
press@ihs.com
+1 303 305 8021 
(bjh) NY 
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