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
Continuous testing helps bridge the gap between developing quickly and maintaining high quality products. But to implement continuous testing, CTOs must take a strategic approach to building a testing infrastructure and toolset that empowers their team to move fast. Download our guide to laying the groundwork for a scalable continuous testing strategy.
A critical component of any IoT project is what to do with all the data being generated. This data needs to be captured, processed, structured, and stored in a way to facilitate different kinds of queries. Traditional data warehouse and analytical systems are mature technologies that can be used to handle certain kinds of queries, but they are not always well suited to many problems, particularly when there is a need for real-time insights.
CenturyLink has announced that application server solutions from GENBAND are now available as part of CenturyLink’s Networx contracts. The General Services Administration (GSA)’s Networx program includes the largest telecommunications contract vehicles ever awarded by the federal government. CenturyLink recently secured an extension through spring 2020 of its offerings available to federal government agencies via GSA’s Networx Universal and Enterprise contracts. GENBAND’s EXPERiUS™ Application...
"My role is working with customers, helping them go through this digital transformation. I spend a lot of time talking to banks, big industries, manufacturers working through how they are integrating and transforming their IT platforms and moving them forward," explained William Morrish, General Manager Product Sales at Interoute, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.
Big Data engines are powering a lot of service businesses right now. Data is collected from users from wearable technologies, web behaviors, purchase behavior as well as several arbitrary data points we’d never think of. The demand for faster and bigger engines to crunch and serve up the data to services is growing exponentially. You see a LOT of correlation between “Cloud” and “Big Data” but on Big Data and “Hybrid,” where hybrid hosting is the sanest approach to the Big Data Infrastructure pro...
In his session at 18th Cloud Expo, Sagi Brody, Chief Technology Officer at Webair Internet Development Inc., and Logan Best, Infrastructure & Network Engineer at Webair, focused on real world deployments of DDoS mitigation strategies in every layer of the network. He gave an overview of methods to prevent these attacks and best practices on how to provide protection in complex cloud platforms. He also outlined what we have found in our experience managing and running thousands of Linux and Unix ...
The IoT is changing the way enterprises conduct business. In his session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, discussed how businesses can gain an edge over competitors by empowering consumers to take control through IoT. He cited examples such as a Washington, D.C.-based sports club that leveraged IoT and the cloud to develop a comprehensive booking system. He also highlighted how IoT can revitalize and restore outdated business models, making them profitable ...
"We view the cloud not really as a specific technology but as a way of doing business and that way of doing business is transforming the way software, infrastructure and services are being delivered to business," explained Matthew Rosen, CEO and Director at Fusion, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
We all know the latest numbers: Gartner, Inc. forecasts that 6.4 billion connected things will be in use worldwide in 2016, up 30 percent from last year, and will reach 20.8 billion by 2020. We're rapidly approaching a data production of 40 zettabytes a day – more than we can every physically store, and exabytes and yottabytes are just around the corner. For many that’s a good sign, as data has been proven to equal money – IF it’s ingested, integrated, and analyzed fast enough. Without real-ti...
"Software-defined storage is a big problem in this industry because so many people have different definitions as they see fit to use it," stated Peter McCallum, VP of Datacenter Solutions at FalconStor Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
I wanted to gather all of my Internet of Things (IOT) blogs into a single blog (that I could later use with my University of San Francisco (USF) Big Data “MBA” course). However as I started to pull these blogs together, I realized that my IOT discussion lacked a vision; it lacked an end point towards which an organization could drive their IOT envisioning, proof of value, app dev, data engineering and data science efforts. And I think that the IOT end point is really quite simple…
With 15% of enterprises adopting a hybrid IT strategy, you need to set a plan to integrate hybrid cloud throughout your infrastructure. In his session at 18th Cloud Expo, Steven Dreher, Director of Solutions Architecture at Green House Data, discussed how to plan for shifting resource requirements, overcome challenges, and implement hybrid IT alongside your existing data center assets. Highlights included anticipating workload, cost and resource calculations, integrating services on both sides...
In his session at @DevOpsSummit at 19th Cloud Expo, Yoseph Reuveni, Director of Software Engineering at Jet.com, will discuss Jet.com's journey into containerizing Microsoft-based technologies like C# and F# into Docker. He will talk about lessons learned and challenges faced, the Mono framework tryout and how they deployed everything into Azure cloud. Yoseph Reuveni is a technology leader with unique experience developing and running high throughput (over 1M tps) distributed systems with extre...
"We are a well-established player in the application life cycle management market and we also have a very strong version control product," stated Flint Brenton, CEO of CollabNet,, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.