BackWorldwide PC shipments post steep decline in March quarter
Decline continues as customers migrate to devices such as tablets, smartphones: Gartner, IDC reports
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Mumbai: Worldwide personal computer (PC) shipments saw their steepest decline in the March quarter as consumers continue migrating content consumption to devices such as tablets and smartphones, according to two reports by research firm Gartner Inc. and International Data Corp. (IDC).
Worldwide PC shipments fell 11.2% to 79.2 million units in the March quarter from the same period a year earlier, said a preliminary report released on Thursday by Gartner. The numbers dropped below 80 million units for the first time since the second quarter of 2009.
Similarly, IDC said on Wednesday that worldwide PC shipments fell 13.9% to 76.3 million, worse than the forecast decline of 7.7%. The extent of the year-on-year contraction marked the worst quarter since IDC began tracking the PC market quarterly in 1994. The results also marked the fourth consecutive quarter of year-on-year shipment declines, the report noted.
“Although the reduction in shipments was not a surprise, the magnitude of contraction is both surprising and worrisome," said David Daoud, IDC research director, personal computing. “The industry is going through a critical crossroads, and strategic choices will have to be made as to how to compete with the proliferation of alternative devices and remain relevant to the consumer. Vendors will have to revisit their organizational structures and go-to-market strategies, as well as their supply chain, distribution, and product portfolios in the face of shrinking demand and looming consolidation."
According to Bob O’Donnell, IDC programme vice-president, clients and displays, while some consumers appreciate the new form factors and touch capabilities of Windows 8, “the radical changes to the UI (user interface), removal of the familiar start button, and the costs associated with touch have made PCs a less attractive alternative to dedicated tablets and other competitive devices".
Microsoft will have to make some very tough decisions moving forward if it wants to help reinvigorate the PC market, he said.
All regions showed a decrease in shipments, with the EMEA (Europe, the Middle East and Africa) region experiencing the steepest decline, according to Gartner. Even emerging markets, where PC penetration is low, are not expected to be a strong growth area for PC vendors, said the Gartner report.
Hewlett-Packard Co. and Lenovo Group Ltd were in a virtual tie for the top position in the first quarter of 2013. HP had a challenging quarter, recording its worst shipment decline since the acquisition of Compaq in 2003. HP’s consumer business eroded overall shipment volume, but its professional business was also under attack by competitors, the report said.
Dell Inc. also had a challenging quarter, registering a shipment decline in all regions except Japan. In Gartner’s preliminary view, Dell’s shipment growth in Japan was boosted by moderate demand, driven by a corporate refresh. Dell’s discussions about a possible leveraged buyout hurt shipments, as competitors aggressively attacked Dell’s position in the professional market.
Apple and Lenovo were the only vendors among the top five in the US to experience PC shipment growth in the first quarter of 2013. HP held onto the top position, accounting for 24.2% of PC shipments in the US. However, its shipments declined 23.3% from the first quarter of 2012.
In the Asia-Pacific, PC shipments fell 10.3% to 27.6 million units. This region also experienced its strongest decline since Gartner began tracking PC shipments. Asia-Pacific buyers remained cautious in spending amid a fragile economic environment. Both China and India experienced year-over-year shipment declines, the report said.
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