Worldwide PC shipments plunged by 9.6 per cent during January-March 2016 — the sixth straight quarterly fall — to 64.8 million units on lower adoption in new households, especially in emerging markets, preliminary results by Gartner showed today.
This is the first time since 2007 when shipments have fallen below 65 million units. PC shipments had totalled 71.68 million in the first quarter of 2015.
“Worldwide PC shipments totalled 64.8 million units in the first quarter of 2016, a 9.6 per cent decline from the first quarter of 2015,” Gartner said.
It added that all major regions showed year-on-year shipment declines, with Latin America showing the steepest drop, where PC shipments declined 32.4 per cent.
Gartner said these results are preliminary and final statistics will made be available soon.
“The Latin American PC market was intensely impacted by Brazil, where the problematic economy and political instability adversely affected the market,” Mikako Kitagawa, Principal Analyst at Gartner said.
Kitagawa added the ongoing decline in US shipments showed that the installed base is still shrinking, a factor that played across developed economies.
Low oil prices drove economic contraction in Latin America and Russia, changing them from drivers of growth to market laggards.
Gartner said PCs are not being adopted in new households as they were in the past, especially in emerging markets.
“In these markets, smartphones are the priority. In the business segment, Gartner analysts said the Windows 10 refresh is expected to start toward the end of 2016,” it said.
Lenovo maintained the number one position in worldwide PC shipments in the reported period despite a 7.2 per cent decline in shipments.
The company experienced a shipment decline in all regions except North America, where the company’s PC units increased 14.6 per cent from the same period last year.
In the last four quarters, Lenovo has logged double-digit shipment growth in the US, while the overall market has declined.
HP Inc stood at second position followed by Dell at third and Asus at fourth place.
Gartner said HP was split into Hewlett-Packard Enterprise and HP Inc at the end of 2015, and HP Inc’s first quarter indicates the challenges the company faces in the PC market.
“HP Inc has said it wants to stay away from low-profit segments, and the first quarter of 2016 results reflect its efforts to emphasise high-end sales, which cost it shipments,” it added.
Dell’s worldwide PC shipments declined 0.4 per cent in the first quarter, which was much better than the global industry average.