Worldwide PC Shipments Declined 2.4 Percent in Q1 2017, Gartner Says

The PC industry experienced modest growth in the business PC market, but this was offset by declining consumer demand, according to a new report from Gartner. In the U.S., PC shipments totaled 12.3 million units in the first quarter of 2017, a 2.4 percent decline from the first quarter of 2016.

Worldwide PC shipments totaled 62.2 million units in the first quarter of 2017, a 2.4 percent decline from the first quarter of 2016, the report found. The first quarter of 2017 was the first time since 2007 that the PC market experienced shipments below 63 million units in a quarter.

The U.S. market has experienced a modest decline for two quarters. Much of the decline is attributed to the weak consumer market. Consumers continued to refrain from replacing older PCs, and some consumers have abandoned the PC market altogether. The business segment still sees the PC as an important device, and it's the main work device for businesses.

"While the consumer market will continue to shrink, maintaining a strong position in the business market will be critical to keep sustainable growth in the PC market. Winners in the business segment will ultimately be the survivors in this shrinking market," said Mikako Kitagawa, principal analyst at Gartner.

Kitagawa noted that vendors who do not have a strong presence in the business market will encounter major problems, and they will be forced to exit the PC market in the next five years. However, there will also be specialized niche players with purpose-built PCs, such as gaming PCs and ruggedized laptops.

"The top three vendors — Lenovo, HP and Dell — will battle for the large-enterprise segment,” he explains. “The market has extremely limited opportunities for vendors below the top three, with the exception of Apple, which has a solid customer base in specific verticals."

The competition among the top three vendors intensified in the first quarter of 2017. Lenovo and HP were in a virtual tie for the top spot. Lenovo accounted for 19.9 percent of worldwide PC shipments (see Table 1), followed by HP with 19.5 percent share, and Dell at 15 percent share. Lenovo's growth exceeded the regional average in all key regions except the U.S.

(For more information visit: http://www.gartner.com)