Worldwide PC shipments dropped for the fifth consecutive quarter and the longest duration of decline in the PC market’s history. According to preliminary results by Gartner, 76mn units shipped in Q2'13, a 10.9% decrease YoY.1
All regions showed a decline compared to a year ago. The fall in the Asia/Pacific PC market continued, showing five consecutive quarters of shipment decline, and the Europe, Middle East and Africa (EMEA) PC market registered two consecutive quarters of double-digit decline.1
The sharp decline in Q2'13 was due not only to the shift in usage patterns away from notebooks to tablets, but also to inventory reductions in the channel with the transition to new Haswell-based products. Touch-based notebooks still account for less than 10% of total consumer notebook shipments in the last quarter.1
While mature and developed markets move from low-end PCs to inexpensive tablets, in emerging markets consumers pass over PCs to purchase tablets as their first computing device. This also accounts for the collapse of the mini notebook market. Dell’s shipments declined YoY, but its Q2'13 results showed a smaller decline than the past several quarters. Dell showed good growth in the US and Japan, but struggled to increase shipments in Asia/Pacific and EMEA. Both Acer and ASUS showed steep declines compared to the second quarter last year.1
In the US market, PC shipments totaled 15mn units in Q2'13, a 1.4% decline YoY. This decline was less than the past seven quarters, and the market grew 8.5% sequentially. Strong growth in the enterprise-focused PC business with Windows XP to Windows 7 transitions contributed to improved Q2'13 results. PC shipments in EMEA were weakened in Q2'13, with a 16.8% decline YoY.1
IDC's preliminary results show that the Asia/Pacific (excluding Japan) PC market declined 1% QoQ and 11% YoY in Q2'13 to reach 26.7mn units. Weak sales for much of Q2'13 were attributed primarily to China with ongoing consumer distractions such as smartphones and tablets, as well as the slowing economy. While consumer sentiment in the rest of region was also tepid, a higher-than-expected shipment for a large education notebook project in India helped to offset some of this decline. The second half of the year still faces a number of challenges such as economic and channel conditions in China as well as uncertainty around the large education project in India.
Weakness in China continued to affect Lenovo’s performance as it declined in unit terms YoY, although a seasonal recovery and strong performance in ASEAN helped the vendor improve share on a sequential basis. HP’s jump in share and YoY growth was largely driven by the vendor’s fulfillment of a very large education notebook project in India. Dell dropped back after a strong start to the year, while Acer and ASUS continued to struggle amid lacklustre consumer buying sentiment as all three vendors declined in unit terms YoY.2
PC shipments in Western Europe totaled 10.9mn units in Q2'13, a decline of 19.8% YoY, according to Gartner. The market exit of the netbook PC, and vendors reducing their inventory to make room for new Intel chips and Windows 8.1 have led to the decline. Mobile3 and desktop PC shipments declined 23.9% and 12.2% YoY, respectively. PC shipments in the professional market declined 13.5%, while the consumer PC market decreased 25.8% in Q2'13. In France, the mobile PC market accounted for 64% of total PC shipments with volumes decreasing 21% YoY. Ultra portables were the only category to achieve growth and represented 13% of all mobile PCs shipped in Q2'13. Desktop PCs declined 15% YoY. In Q2'13, the consumer PC market decreased 22% while the professional PC market declined 15%.4
System & PC Hardware companies in the analysis showed a trend similar to the previous quarter. Dell’s YoY revenue was flat, EMC and Lenovo reported growth of 5.7% and 9.7% respectively, while HP, IBM and Xerox registered declines. Lenovo’s growth was driven by increased sales of their Mobile Internet Digital Home unit, which includes smartphones and tablets. EMC strengthened its revenue with growth in its information infrastructure and information storage businesses.
All the companies in the analysis reported growth in profits except Xerox. The highest income growth was reported by Dell with an increase of 57%.