IDC: Worldwide PC shipments Saw A Decline Of 4.4% YoY, Lenovo Maintains Its Position As No.1 PC Maker

IDC Wordlwide PC Shipments 1

IDC today reported that worldwide PC shipments totaled 73.4 million units in the first quarter of 2014 (1Q14), a decline of -4.4% year on year as a result of continuing weakness in consumer and emerging market segments. Windows XP was one of the main reasons for growth in commercial market segments as Microsoft is ending the support for OS. Lenovo maintained its lead in total worldwide PC shipments, followed by HP and Dell. Acer and Asus are the biggest losers in this segment as they are transitioning towards tablets and mobile devices.

“Worldwide PC shipments have now declined for eight consecutive quarters as a result of shifting technology usage and competition (notably with tablets & smartphones) as well as economic pressures (including high unemployment, slow growth & investment, tight credit, and currency fluctuations) related to the Great Recession, sovereign debt crises, and their related impact on international trade,” said Loren Loverde, Vice President, Worldwide PC Trackers. “The economic front seems to be gradually stabilizing and/or improving. However, this has been a slow process, and it is unlikely that sovereign debt issues will be resolved soon or that growth in emerging markets like China will return to prior levels. On the technology front, the transition to more mobile devices and usage modes is unlikely to stop, although the short term impact on PC shipments may slow as tablet penetration rises – as we’ve begun to see in some mature regions. The net result remains consistent with our past forecasts – in particular, that there is potential for PC shipments to stabilize, but not much opportunity for growth.”

“PC shipment growth in the United States remained slightly faster than most other regions in the first quarter. However, the passing boost from XP replacements, constrained consumer demand, and no clear driver of a market rebound are expected to keep growth below zero going forward,” said Rajani Singh, Senior Research Analyst, Personal Computing. “A rebound in consumer or a continuation of accelerated commercial upgrades could boost growth slightly, but low demand for upgrades in general combined with competition from tablets and 2-in-1 systems limit the growth potential.”

IDC Wordlwide PC Shipments 2

Source: IDC

  • Jamie Maclean

    “…a decline of -4.4% year on year …” would actually mean an increase! I think you meant “…a decline of 4.4% year on year …”

  • deathdealer351

    Acer is all android and cromebook. Asus had a mini hit on black Friday with the $299 t100 but pretty much stopped selling it

  • SategB

    Ouch…post PC is right. I’m really glad we have a new intelligent CEO who concurs with my beliefs that Microsoft future a one based on Software and Services. Now it is time to release shareholder value and spin off or sale Devices and XBox Divisions.

    • LexicoRed

      Back on that horse again? It will be a long time before that happens unless revenue tank this next year but not likely to happen with Azure performing so well and with companies being forced off XP; both high margin revenues streams.

      • SategB

        I want to disagree but I reluctantly concur to your timeline but sooner the better for the company.

    • whatup12

      A few months ago, you educated me about how stagnant of a stock MSFT is and how it is was constant disappointment, etc. However, I have seen three separate articles in broadly read publications that MSFT is a hot stock. Moreover, they noted that it is a stock that professional traders like George Soros recognize the value of but that day traders were slow to understand and profit from. In any case, I like the new CEO…but it is also clear that decisions like Office for Ipad, Onenote strategy, Azure, etc were made under Ballmer (or the person you pleasantly referred to as a stage monkey or something). I have seen dozens of articles heralding MSFT new strategy for three screens and a cloud strategy in the last few weeks since the march 27th reveal. When stocks are going up, buzz is positive, and they are still in the early phases of execution, do you really think that it is still a good idea to retreat 100% and focus on Azure and office?

      • SategB

        Thank you, I appreciate the recognition that the board and our new CEO is implimenting the strategic vision I advocated to them years ago. Removal of a ban CEO, increase focus on Services such as Azure, and understanding transitional revenue can be maximized through software. The only step remains is dismantling the pull of hardware on the bottom line.

        Yes the resent up-tic in performance of the stock is an expected delight. As the company furthers implementing my advocated course correction of the Ballmer years we should see similar points added to the baseline.

        This value was there we just needed an intelligent CEO to impliment my strategy. And as I figured by doing so we are seeing people getting excited about once stagnet and lethargic MSFT!

        • whatup12

          Well, at least hope that since they are implementing your strategy that a) they are giving you some kickbacks b) you made a lot of money from this given that it was expected. I believe two things 1) the strategy being implemented now (informed by you) was led by Ballmer though Satya is clearly supportive and may have made some course corrections 2) necessitates holding onto Bing as background info provider 3) thinks forward about how to deliver through hardware. But still I think you prefer short term gains as compared to long term–and between those two, I would always prefer the long term. That said, I know that the market can only think in quarters…

          • SategB

            Quite the contrary I am always favored my bias towards growth investing but as stated earlier I have held a weakness for Microsoft despite the stagnation issues ushered in by Ballmer’s extend and defend strategy that has been replaced by the boards insistence and Nadella’s delivery.

            Yes, I and my fellow investors has been nicely rewarded for our “encouragement” of the Board to force the disembarking of Ballmer’s plan, just as over the next month we will be again when we see them continue embracing my recommendations of hardware sell off.

            While some here wants to hold on to the past and try to keep the company from growing I say it has been a long time but MSFT is once again a company we can be proud of, and I for one say thank you Satya for this would not be the case if Ballmet still held the CEO sit.

          • whatup12

            I have to give you credit for making a specific prediction: That within the next month we will hear news that there are plans to sell of hardware-focused divisions of MSFT. I will take this as a gentleman’s bet and even predict that no such announcement will happen over the next 2 months. For all of the people that make predictions, I do think that this is a tangible one and will either be proven correct or not which is a good thing. That said, care to specify your prediction a little more as to what the news will be? Do we have a “bet”? :)

          • SategB

            You are correct “month” should read “months” but I whole heartily share your optimism we will see the release of value by the disenfranchising the poor performing divisions sooner the later. As I stated earlier I do not play micro trends investing but favor long term growth investing. This forgoes timing investing, that is for those who enjoys horse track. But rest assure as my previous advocations have been accepted so shall this one in shorter time then not.

            We can both agree it is enjoyable to see the company moving in the right direction again.

          • whatup12

            Indeed, we can. It is fun to see MSFT viewed in a positive light by general media, etc. Let’s hope that this translates to a continued success–even if we disagree about how they will get there.

    • Nham Thien Duong

      Nope, it’s not Post-P.C. and mobile devices are rather a form factor than a whole new industry, also Microsoft should care more about their consumers than shareholders, because it may please shareholders to do the dumb things that dumb tech-bloggers that obviously hate Microsoft keep saying, the long term strategy is better for Microsoft, honestly I’m against Microsoft competing with O.E.M.’s, but from Microsoft’s viewpoint it’s understandable as others would A) invest more in Android, and B) ignore Windows altogether, also there is no ”post-P.C.” ¿are we living in a post-microwave era because everyone already has one and it wouldn’t be profitable to start an entire business around them today rather than selling them as an extra in general appliances stores? Only idiots seriously use the term ”post-P.C.”

    • donzebe

      I am sorry, Microsoft is not a third world government where the Boss gets up in the morning and makes the decision and expect everyone to follow.
      All what is being implement now at Microsoft have long been decided upon before the coming of the new CEO. All that can be credited to the new CEO is that he did not kill the plans, because he has the following choices; continue with Balmer’s era future plans, modify and implement or kill them all together. Either way, Microsoft have a governing body that will have to vote on any of his ideas.

  • whatup12

    Agree–these losses were disproportionately borne by Acer who has been open with the strategy that they are deinvesting their resources in the PC. not shocking that consumers would deinvest in them…

  • annaarron

    According to recent news by BidnessEtc; PC shipments have been on the decline for the eighth quarter in a row, ever since smartphones and tablets started capturing the market; here are the details