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Gartner Says Worldwide PC Shipments Declined 4.6 Percent in First Quarter of 2019

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CPU Supply Constraints Are Strengthening Top Vendors' Positions

Worldwide PC shipments totaled 58.5 million units in the first quarter
of 2019, a 4.6 percent decline from the first quarter of 2018, according
to preliminary results by Gartner, Inc.

"We saw the start of a rebound in PC shipments in mid-2018, but
anticipation of a disruption by CPU shortages impacted all PC markets as
vendors allocated to the higher-margin business and Chromebook segment,"
said Mikako
Kitagawa
, senior principal analyst at Gartner. "While the consumer
market remained weak, the mix of product availability may have also
hindered demand. In contrast, Chromebook shipments increased by double
digits compared with the first quarter of 2018, despite the shortage of
entry-level CPUs. Including Chromebook shipments, the total worldwide PC
market decline would have been 3.5 percent in the first quarter of 2019."

"The supply constraints affected the vendor competitive landscape as
leading vendors had better allocation of chips and also began sourcing
alternative CPUs from AMD," said Ms. Kitagawa. "The top three vendors
worldwide were still able to increase shipments despite the supply
constraint by focusing on their high-end products and taking share from
small vendors that struggled to secure CPUs. Moreover, the constraints
resulted in the top vendors shifting their product mix to the high-end
segment in order to deal with the constraint — which, along with
favorable component price trends, should boost profit margins."

The top three vendors — Lenovo, HP Inc. and Dell — accounted for 61.5
percent of global PC shipments in the first quarter of 2019, compared
with 56.9 percent of shipments in the first quarter of 2018 (see Table
1). These top three vendors continued to gain share in the PC market as
scale becomes a bigger factor in industry dynamics. Intel's CPU supply
constraint accelerated this trend.

Table 1

Preliminary Worldwide PC Vendor Unit Shipment Estimates for
1Q19 (Thousands of Units)



Company
     

1Q19
Shipments

     

1Q19 Market
Share (%)

     

1Q18
Shipments

     

1Q18 Market
Share (%)

     

1Q19-1Q18
Growth (%)

Lenovo       13,196       22.5       12,343       20.1       6.9
HP Inc. 12,826 21.9 12,727 20.7 0.8
Dell 9,989 17.6 9,841 16.0 1.5
Apple 3,977 6.8 4,078 6.6 -2.5
Asus 3,603 6.2 3,887 6.3 -7.3
Acer Group 3,322 5.7 3,829 6.2 -13.2
Others 11,610 19.8 14,671 23.9 -20.9
Total       58,523       100.0       61,375       100.0       -4.6
Notes: Data includes desk-based PCs, notebook PCs and ultramobile
premiums (such as Microsoft Surface), but not Chromebooks or iPads.
All data is estimated based on a preliminary study. Final estimates
will be subject to change. The statistics are based on shipments
selling into channels. Numbers may not add up to totals shown due to
rounding.

Source: Gartner (April 2019)

 

Lenovo remained in the top spot in the first quarter of 2019 with the
largest year-over-year growth among the top vendors. However, Lenovo
benefited from the inclusion of Fujitsu's shipments from its 2Q18 joint
venture. Lenovo's shipments increased in EMEA and Japan, where Fujitsu
had a larger presence.

HP Inc.'s worldwide PC shipments increased 0.8 percent in the first
quarter of 2019 versus the same period last year. The company saw an
increase in desktop shipments while mobile PC shipments remained flat.
HP Inc. recorded a small increase in shipments in EMEA, but experienced
a decline in all other regions.

Dell recorded its fifth consecutive quarter of PC shipment growth in the
first quarter of 2019. Dell increased PC shipments in EMEA, Latin
America and Japan, but declined in North America and Asia/Pacific.
Desktop PC shipments continued to be strong for Dell in all regions,
showing Dell's strength in the business segment.

Business PC Demand Remained Strong

Business PC demand remained strong throughout the first quarter of 2019
across most key regions. The PC refresh driven by Windows 10 has been a
driving force of business PC growth over the past three years, but
Gartner forecasts that 2019 will be the last year in which shipments
will be impacted by this refresh. "While PC shipment results in the
first quarter of 2019 indicated that the business PC segment still
showed strong demand, weak mobile PC results could be the indicator that
the Windows 10 refresh has nearly peaked," said Ms. Kitagawa.

Regional Overview

In the U.S., PC shipments totaled 11 million units in the first quarter
of 2019, a 6.3 percent decrease from the first quarter of 2018. HP Inc.
took the top spot in the U.S. based on shipments, as its market share
increased to 29.4 percent. Dell took the No. 2 position as its shipments
declined 7.1 percent, and its market share totaled 28.7 percent in the
first quarter of 2019 (see Table 2)

Table 2

Preliminary U.S. PC Vendor Unit Shipment Estimates for 1Q19
(Thousands of Units)



Company
     

1Q19
Shipments

     

1Q19 Market
Share (%)

     

1Q18
Shipments

   

 

1Q18 Market
Share (%)

     

1Q19-1Q18
Growth (%)

HP Inc.       3,243       29.4       3.404     28.9       -4.7
Dell. 3,162 28.7 3,404 28.9 -7.1
Apple 1,437 13.0 1,489 12.6 -3.5
Lenovo 1,497 13.6 1,619 13.7 -7.5
Microsoft 449 4.1 458 3.9 -2.0
Others 1,237 11.2 1,400 11.9 -11.7
Total       11,026       100.0       11,773       100.0       -6.3
Notes: Data includes desk-based PCs, notebook PCs and ultramobile
premiums (such as Microsoft Surface), but not Chromebooks or iPads.
All data is estimated based on a preliminary study. Final estimates
will be subject to change. The statistics are based on shipments
selling into channels. Numbers may not add up to totals shown due to
rounding.

Source: Gartner (April 2019)

 

Japan was the only region to experience PC shipment growth in the first
quarter of 2019 with a 6.8 percent increase year over year. This was
primarily driven by a surge in business PC shipments. Latin America
experienced the largest decline in the quarter with a 16.6 percent
decrease in PC shipments. This decline was due to a lack of stability in
political and economic environments, as well as the CPU supply
constraints, which severally impacted the small system builders in the
region.

PC shipments in EMEA totaled 18 million units in the first quarter of
2019, a 2.2 percent decline year over year. Enterprise shipments
increased as many companies moved ahead with Windows 10 deployments.
However, consumer PC demand remained weak as users are not replacing
older PCs and are not migrating to hybrid systems, which have not gained
wide adoption in EMEA as users continue to prefer larger screens.

PC shipments in Asia/Pacific totaled 20.1 million units in the first
quarter of 2019, a 5.1 percent decline from the first quarter of 2018.
This decline was largely due to weak PC demand in China. The consumer
market across Asia/Pacific continued to see some growth driven by demand
for thin and light ultramobile premium devices. Vendors such as Huawei
and Xiaomi are pushing thin and light mobile PCs into the consumer
market with aggressive pricing.

These results are preliminary. Final statistics will be available soon
to clients of Gartner's PC Quarterly Statistics Worldwide by Region
program. This program offers a comprehensive and timely picture of the
worldwide PC market, allowing product planning, distribution, marketing
and sales organizations to keep abreast of key issues and their future
implications around the globe.

About Gartner

Gartner, Inc. (NYSE:IT), is the world's leading research and advisory
company and a member of the S&P 500. We equip business leaders with
indispensable insights, advice and tools to achieve their
mission-critical priorities today and build the successful organizations
of tomorrow.

Our unmatched combination of expert-led, practitioner-sourced and
data-driven research steers clients toward the right decisions on the
issues that matter most. We are a trusted advisor and objective resource
for more than 15,000 organizations in more than 100 countries — across
all major functions, in every industry and enterprise size.

To learn more about how we help decision makers fuel the future of
business, visit gartner.com.

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