Softness In Consumer PC Demand Slowed Shipment Growth

Worldwide PC shipments surpassed 88.3 million units in the third quarter of 2010, a 7.6 percent increase from the third quarter of 2009, according to preliminary results by Gartner, Inc. These third quarter results were below Gartner’s earlier market outlook. Gartner had expected third quarter PC shipments to grow 12.7 percent.

“The major growth inhibitor in the third quarter of 2010 was softness in consumer PC demand in the U.S. and Western Europe. The third quarter historically is a strong consumer quarter, led by back-to-school sales,” said Mikako Kitagawa, Principal Analyst, Gartner. “Consumer mobile PC demand, driven by low-priced notebooks, including mini-notebooks, slowed after very strong growth the past two years.”

“Media tablet hype around devices such as the iPad has also affected consumer notebook growth by delaying some PC purchases, especially in the U.S. consumer market. Media tablets don’t replace primary PCs, but they affect PC purchases in many ways,” said Kitagawa said. “At this stage, hype around media tablets has led consumers and the channels to take a ‘wait and see’ approach to buying a new device.”

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HP remained in the top worldwide position, but it experienced a slight decline in shipments in the quarter. HP experienced a 20 percent decline in shipments in Asia/Pacific as the company put a higher priority on profits in the region. In the U.S., the company was impacted by weak consumer growth.
Acer experienced a shipment decline of 1.7 percent in the third quarter. Dell showed solid growth across most regions. Overall, Dell benefited from the professional PC market refresh, but North America showed disappointing results. Lenovo showed the strongest growth among the top five vendors worldwide. The professional PC market helped boost Lenovo’s growth in the U.S. and EMEA.

“The weak back-to-school sales were not because students held off on PC purchases, but because nonstudent buyers, who normally are lured by massive back-to-school promotions, stayed away from PC purchases,” Kitagawa said. “These buyers were influenced by media tablet introductions, as well as the still-gloomy economy, since these buyers do not have an immediate need to purchase a PC.”

In Asia/Pacific, PC shipments reached 29.7 million units in the third quarter of 2010, a 10.5 percent increase from the third quarter of 2009. In the emerging markets, mobile PC demand in the consumer segment continued to grow unabated as mainstream notebooks continue to appeal to first-time PC buyers as well as those substituting notebooks for desktops. PC shipments in China in the third quarter of 2010 held steady at 62 percent of all PCs shipped in Asia/Pacific, growing 11.3 percent over the same quarter last year.

Worldwide PC shipments surpassed 88.3 million units in the third quarter of 2010, a 7.6 percent increase from the third quarter of 2009, according to preliminary results by Gartner, Inc. These third quarter results were below Gartner’s earlier market outlook. Gartner had expected third quarter PC shipments to grow 12.7 percent.

“The major growth inhibitor in the third quarter of 2010 was softness in consumer PC demand in the U.S. and Western Europe. The third quarter historically is a strong consumer quarter, led by back-to-school sales,” said Mikako Kitagawa, Principal Analyst, Gartner. “Consumer mobile PC demand, driven by low-priced notebooks, including mini-notebooks, slowed after very strong growth the past two years.”

“Media tablet hype around devices such as the iPad has also affected consumer notebook growth by delaying some PC purchases, especially in the U.S. consumer market. Media tablets don’t replace primary PCs, but they affect PC purchases in many ways,” said Kitagawa said. “At this stage, hype around media tablets has led consumers and the channels to take a ‘wait and see’ approach to buying a new device.”

HP remained in the top worldwide position, but it experienced a slight decline in shipments in the quarter. HP experienced a 20 percent decline in shipments in Asia/Pacific as the company put a higher priority on profits in the region. In the U.S., the company was impacted by weak consumer growth.
Acer experienced a shipment decline of 1.7 percent in the third quarter. Dell showed solid growth across most regions. Overall, Dell benefited from the professional PC market refresh, but North America showed disappointing results. Lenovo showed the strongest growth among the top five vendors worldwide. The professional PC market helped boost Lenovo’s growth in the U.S. and EMEA.

“The weak back-to-school sales were not because students held off on PC purchases, but because nonstudent buyers, who normally are lured by massive back-to-school promotions, stayed away from PC purchases,” Kitagawa said. “These buyers were influenced by media tablet introductions, as well as the still-gloomy economy, since these buyers do not have an immediate need to purchase a PC.”
In Asia/Pacific, PC shipments reached 29.7 million units in the third quarter of 2010, a 10.5 percent increase from the third quarter of 2009. In the emerging markets, mobile PC demand in the consumer segment continued to grow unabated as mainstream notebooks continue to appeal to first-time PC buyers as well as those substituting notebooks for desktops. PC shipments in China in the third quarter of 2010 held steady at 62 percent of all PCs shipped in Asia/Pacific, growing 11.3 percent over the same quarter last year.