Welcome!

News Feed Item

Windows XP Migration and Commercial Spending Helped Offset Weak Consumer PC Demand in the First Quarter of 2014, According to IDC

Worldwide PC shipments totaled 73.4 million units in the first quarter of 2014 (1Q14), a decline of -4.4% year-on-year, according to the International Data Corporation (IDC) Worldwide Quarterly PC Tracker. Although still in decline and with continuing weakness in consumer and emerging market segments, the preliminary results are slightly better than a projected decline of -5.3%.

Similar to the latter part of 2013, the upside in the first quarter arose primarily from demand in mature commercial markets. Commercial refresh projects, which had already been protracted, received a last push from the impending end of Windows XP support, particularly in Japan. In addition, slowing demand for tablets seems to have helped constrain previously drastic cutbacks in notebooks. Nevertheless, emerging regions continued to post weak results, with growth in Latin America and Asia/Pacific (excluding Japan)(APeJ) falling even faster than recent declines as both economic conditions and continued tablet penetration stifled PC shipments.

"Worldwide PC shipments have now declined for eight consecutive quarters as a result of shifting technology usage and competition (notably with tablets & smartphones) as well as economic pressures (including high unemployment, slow growth & investment, tight credit, and currency fluctuations) related to the Great Recession, sovereign debt crises, and their related impact on international trade," said Loren Loverde, Vice President, Worldwide PC Trackers. "The economic front seems to be gradually stabilizing and/or improving. However, this has been a slow process, and it is unlikely that sovereign debt issues will be resolved soon or that growth in emerging markets like China will return to prior levels. On the technology front, the transition to more mobile devices and usage modes is unlikely to stop, although the short term impact on PC shipments may slow as tablet penetration rises – as we've begun to see in some mature regions. The net result remains consistent with our past forecasts – in particular, that there is potential for PC shipments to stabilize, but not much opportunity for growth."

"PC shipment growth in the United States remained slightly faster than most other regions in the first quarter. However, the passing boost from XP replacements, constrained consumer demand, and no clear driver of a market rebound are expected to keep growth below zero going forward," said Rajani Singh, Senior Research Analyst, Personal Computing. "A rebound in consumer or a continuation of accelerated commercial upgrades could boost growth slightly, but low demand for upgrades in general combined with competition from tablets and 2-in-1 systems limit the growth potential."

Regional Highlights

United States – The U.S. market continued to stabilize with growth near zero – in line with forecasts. With shipments totaling 14.3 million PCs in 1Q14, the U.S. market contracted by -0.6% from the same quarter a year ago. Desktop shipments were slightly stronger, posting 3.5% growth, while portables remained in negative territory.

EMEA – The PC market in EMEA returned to more stable levels and performed above expectations, with shipments supported by healthy demand in the commercial space, where end of Windows XP support and improving macro-economic outlook led to stronger than anticipated sell-in across a number of countries. The consumer market started to stabilize, showing signs of improvement; however shipments remained within negative trends. Performance in some mature markets appears to have been more positive than expected, with growth enhanced particularly by corporate renewals, while the business environment in the emerging economies proved difficult, with shipments affected by currency fluctuations and high inventory in certain countries.

Japan – The scale of commercial refresh remained remarkably strong, helping Japan achieve yet another double-digit growth quarter. Consumer volume was also good due to the last minute surge in demand before the VAT increase in April. All major vendors saw sizable growth and Japan shipments rose to more than 7% of worldwide PC volume – the highest since early 2006.

Asia/Pacific (excluding Japan) – Most markets continued to struggle with lackluster demand and cautious channel intake. Inventory remains higher than ideal for most vendors, although pockets of retail are showing signs of mild pick up. Although shipments were close to forecast, growth declined by double digits, marking a full two years of shipment declines for APeJ.

Vendor Highlights

Lenovo preserved its lead in total worldwide PC shipments despite a seasonal drop due to the Chinese New Year. Growth in other regions continued at a solid pace although Latin America slowed after a dramatic expansion over the past year.

HP remained in the number 2 position, with growth rising nicely to nearly 5% year on year, the company's highest growth in more than two years. Strong results in EMEA had the largest impact on HP's results, although growth in the U.S. and Canada also improved notably.

Dell grew over 9% in the first quarter, its highest rate since 4Q11 and the third consecutive quarter of positive year-on-year growth. The vendor's revamped channel strategy – with greater focus on partners and solutions as well as use of PC sales as part of broader solutions – Is paying dividends as the company benefits from the relative strength of commercial replacements as well as operational freedom and reduced uncertainty after completing the privatization.

Acer continues to work on stabilizing PC shipments. Fourth quarter growth turned up nicely, but first quarter results slipped again. Slow consumer demand, competition from other players, and a shift in product portfolio towards 2-in-1 and tablets all contributed to the slower PC results.

ASUS growth slipped notably in the U.S., but follows a relatively strong fourth quarter. The company is in a challenging spot – working to expand regional coverage with a consumer focus when emerging regions and consumers are slow parts of the market. Even so, the company grew faster than the market in EMEA and APeJ (its two largest markets) and saw strong gains in Latin America.

Top 5 Vendors, Worldwide PC Shipments, First Quarter 2014 (Preliminary)
(Units Shipments are in thousands)

Vendor       1Q14 Shipments       1Q14 Market Share       1Q13 Shipments       1Q13 Market Share       1Q14/1Q13 Growth
1. Lenovo       12,962       17.7%       11,732       15.3%       10.5%
2. HP 12,557 17.1% 11,999 15.6% 4.7%
3. Dell 9,856 13.4% 9,014 11.7% 9.3%
4. Acer Group 4,992 6.8% 6,256 8.1% -20.2%
5. ASUS 4,296 5.9% 4,677 6.1% -8.1%
Others 28,757 39.2% 33,091 43.1% -13.1%
Total 73,420 100.0% 76,770 100.0% -4.4%

Source: IDC Worldwide Quarterly PC Tracker, April 9, 2014

Table notes follow the last table

In addition to the table above, an interactive 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, First Quarter 2014 (Preliminary)
(Units Shipments are in thousands)

Vendor       1Q14 Shipments       1Q14 Market Share       1Q13 Shipments       1Q13 Market Share       1Q14/1Q13 Growth
1. HP       3,651       25.6%       3,570       24.9%       2.3%
2. Dell 3,488 24.5% 3,074 21.4% 13.4%
3. Lenovo 1,544 10.8% 1,274 8.9% 21.2%
4. Apple 1,471 10.3% 1,581 11.0% -7.0%
5. Toshiba 1,188 8.3% 1,278 8.9% -7.0%
Others 2,920 20.5% 3,571 24.9% -18.2%
Total 14,262 100.0% 14,349 100.0% -0.6%

Source: IDC Worldwide Quarterly PC Tracker, April 9, 2014

Table notes follow the last table

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, Ultraslim Notebooks, Workstations and do not include handhelds, x86 Servers and Tablets (i.e. iPad, Tablets with detachable keyboards running either Windows or Android). 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 [email protected].

About IDC

International Data Corporation (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. In 2014, IDC celebrates its 50th anniversary of providing strategic insights to help 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.

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
With Cloud Foundry you can easily deploy and use apps utilizing websocket technology, but not everybody realizes that scaling them out is not that trivial. In his session at 21st Cloud Expo, Roman Swoszowski, CTO and VP, Cloud Foundry Services, at Grape Up, will show you an example of how to deal with this issue. He will demonstrate a cloud-native Spring Boot app running in Cloud Foundry and communicating with clients over websocket protocol that can be easily scaled horizontally and coordinate...
yperConvergence came to market with the objective of being simple, flexible and to help drive down operating expenses. It reduced the footprint by bundling the compute/storage/network into one box. This brought a new set of challenges as the HyperConverged vendors are very focused on their own proprietary building blocks. If you want to scale in a certain way, let’s say you identified a need for more storage and want to add a device that is not sold by the HyperConverged vendor, forget about it....
21st International Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Me...
DevOps at Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to w...
Vulnerability management is vital for large companies that need to secure containers across thousands of hosts, but many struggle to understand how exposed they are when they discover a new high security vulnerability. In his session at 21st Cloud Expo, John Morello, CTO of Twistlock, will address this pressing concern by introducing the concept of the “Vulnerability Risk Tree API,” which brings all the data together in a simple REST endpoint, allowing companies to easily grasp the severity of t...
Recently, WebRTC has a lot of eyes from market. The use cases of WebRTC are expanding - video chat, online education, online health care etc. Not only for human-to-human communication, but also IoT use cases such as machine to human use cases can be seen recently. One of the typical use-case is remote camera monitoring. With WebRTC, people can have interoperability and flexibility for deploying monitoring service. However, the benefit of WebRTC for IoT is not only its convenience and interopera...
In his session at 20th Cloud Expo, Scott Davis, CTO of Embotics, discussed how automation can provide the dynamic management required to cost-effectively deliver microservices and container solutions at scale. He also discussed how flexible automation is the key to effectively bridging and seamlessly coordinating both IT and developer needs for component orchestration across disparate clouds – an increasingly important requirement at today’s multi-cloud enterprise.
Given the popularity of the containers, further investment in the telco/cable industry is needed to transition existing VM-based solutions to containerized cloud native deployments. The networking architecture of the solution isolates the network traffic into different network planes (e.g., management, control, and media). This naturally makes support for multiple interfaces in container orchestration engines an indispensable requirement.
Connecting to major cloud service providers is becoming central to doing business. But your cloud provider’s performance is only as good as your connectivity solution. Massive Networks will place you in the driver's seat by exposing how you can extend your LAN from any location to include any cloud platform through an advanced high-performance connection that is secure and dedicated to your business-critical data. In his session at 21st Cloud Expo, Paul Mako, CEO & CIO of Massive Networks, wil...
WebRTC is great technology to build your own communication tools. It will be even more exciting experience it with advanced devices, such as a 360 Camera, 360 microphone, and a depth sensor camera. In his session at @ThingsExpo, Masashi Ganeko, a manager at INFOCOM Corporation, will introduce two experimental projects from his team and what they learned from them. "Shotoku Tamago" uses the robot audition software HARK to track speakers in 360 video of a remote party. "Virtual Teleport" uses a...
Any startup has to have a clear go –to-market strategy from the beginning. Similarly, any data science project has to have a go to production strategy from its first days, so it could go beyond proof-of-concept. Machine learning and artificial intelligence in production would result in hundreds of training pipelines and machine learning models that are continuously revised by teams of data scientists and seamlessly connected with web applications for tenants and users.
When shopping for a new data processing platform for IoT solutions, many development teams want to be able to test-drive options before making a choice. Yet when evaluating an IoT solution, it’s simply not feasible to do so at scale with physical devices. Building a sensor simulator is the next best choice; however, generating a realistic simulation at very high TPS with ease of configurability is a formidable challenge. When dealing with multiple application or transport protocols, you would be...
IT organizations are moving to the cloud in hopes to approve efficiency, increase agility and save money. Migrating workloads might seem like a simple task, but what many businesses don’t realize is that application migration criteria differs across organizations, making it difficult for architects to arrive at an accurate TCO number. In his session at 21st Cloud Expo, Joe Kinsella, CTO of CloudHealth Technologies, will offer a systematic approach to understanding the TCO of a cloud application...
"With Digital Experience Monitoring what used to be a simple visit to a web page has exploded into app on phones, data from social media feeds, competitive benchmarking - these are all components that are only available because of some type of digital asset," explained Leo Vasiliou, Director of Web Performance Engineering at Catchpoint Systems, in this SYS-CON.tv interview at DevOps Summit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
SYS-CON Events announced today that Secure Channels, a cybersecurity firm, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Secure Channels, Inc. offers several products and solutions to its many clients, helping them protect critical data from being compromised and access to computer networks from the unauthorized. The company develops comprehensive data encryption security strategie...