Worldwide combined shipments of devices (PCs, tablets and mobile phones) are projected to reach 2.32bn units in 2013, a 4.5% increase from 2012. The market is being driven by a shift to lower-priced devices in nearly all categories.
Worldwide shipments of traditional PCs (desk-based and notebook) are forecast to total 303mn units in 2013, an 11.2% decline from 2012, and the PC market, including ultra-mobiles, is forecast to decline 8.4% in 2013. Mobile phone shipments are projected to grow 3.7%, with a volume of more than 1.8bn units.
Tablet shipments are expected to grow 53.4% this year, with shipments reaching 184mn units. Premium tablets are faced with continued price decline in the 7-inch form factor as a larger number of consumers prefer smaller form factors for content consumption.
Vendors are transitioning their portfolios to the new Intel processors Bay Trail and Haswell which offer less energy consumption and are physically smaller thus more attractive for ultra-books and the new ‘hybrid’ laptop category.
PC shipments in Western Europe totaled 11.9mn units in Q3’13, a decline of 12.8% from the same period in 2012. The PC market in Western Europe continued to shrink as the transition from PCs to tablets reduced PC sales.
All PC segments in Western Europe declined in Q3’13. Mobile and desktop PC shipments declined by 14.5% and 9.8%, respectively. PC shipments in the professional PC market declined by 8.3%, while the consumer PC market decreased by 17.1%.
HP remained the No. 1 PC vendor followed by Lenovo. Lenovo's double-digit growth in Q3’13 was driven by strong sales of mobile PCs in the consumer and small and midsize business segments at the expense of Acer and Samsung. Lenovo and Dell were the only top-five vendors to grow in Q3’13. Dell continued to expand its footprint in the business PC segment with aggressive pricing. Acer had a double-digit shipment decline as a result of the continued shift from consumer PCs to tablets and hybrid form factors.1
Most PC vendors have shifted their investment from consumer PCs to tablets and hybrid form factors. The challenge they face is to protect their current PC market positions while competing in an aggressive and fast-moving alternative mobile device market. Without a solid position in the professional PC market, they will find it challenging to defend their positions and invest in non-PC devices. 1
Lenovo’s smartphone profitability is improving, with higher penetration into non-China markets. Increased income was led by higher tablet unit sales and recovery in PC markets (especially US enterprise and China). Lenovo continued to grow well above the market average, with strong share gains in Brazil (up from 8% to 18% in three quarters after closure of the CCE acquisition) and EMEA. Lenovo’s tablets units grew 4x YoY, and Lenovo climbed to the No 4 spot in smartphone market share globally.
IBM announced Q3’13 diluted earnings of US$3.68 per share, compared with diluted earnings of US$3.33 per share in Q3’12, an increase of 11%. Q3’13 net income was US$4.0bn compared with US$3.8bn in Q3’12, an increase of 6%. Total revenues for Q3’13 of US$23.7bn were down 4% from Q3’12. The increase in net income was due to expansion of operating margins. Cloud, mobile, business analytics and security continued to show strong growth.
EMC reported quarterly earnings of US$0.27 and revenue of US$5.5bn, an increase of 5% YoY. The Information Infrastructure group’s revenue fell from US$4.3bn to US$4.17bn. The Information Storage group’s revenue decreased, to US$3.77bn from US$3.9bn. Pivotal, am EMC-VMware joint venture has recently completed its first acquisition of Xtreme Labs. Its revenue grew from US$70mn in Q2’13 to US$80mn in Q3’13. In Q3’13, quarterly revenue from the US increased 2% YoY to US$3bn, representing 53% of all Q3 revenue. Business outside the US increased 8% YoY, with revenues of US$2.6bn, representing 47% of total Q3 revenue. Asia-Pacific and Japan grew by 8% YoY.