XP has helped slow the decline of PC sales

Subject: General Tech | April 14, 2014 - 10:24 AM |
Tagged: gartner, pc sales, desktop market share

With a total of 76.6 million PCs shipped worldwide in the first quarter of 2014 the desktop market only shrunk by 1.7% compared to the first quarter of 2013.  Gartner attributes this to two main factors, new desktops being purchased to replace aging machines running WinXP and a decline in the sales of tablets, at least in the US.  Lenovo retains its top spot globally but HP has been doing quite well with their marketing and now hold top spot in both the US and EMEA.  Check out all their findings at DigiTimes.

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"The end of XP support by Microsoft on April 8 has played a role in the easing decline of PC shipments," said Mikako Kitagawa, principal analyst at Gartner. "All regions indicated a positive effect since the end of XP support stimulated the PC refresh of XP systems. Professional desktops, in particular, showed strength in the quarter."

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Source: DigiTimes

Lenovo Outperforms Market Forecasts, Grabs Global PC Market Share Lead From HP

Subject: General Tech | July 14, 2013 - 12:02 PM |
Tagged: Lenovo, IDC, hp, desktop market share

Earlier this week Gartner reported that global PC shipments in the second quarter of this year had fallen 10.9% YoY. In line with Gartner’s statistics, market research firm IDC (International Data Corp) has also released Q2 2013 results on global PC shipments. The interesting takeaway from the IDC report is the market share numbers, however. The IDC report shows that Lenovo has overtaken HP as the number one PC OEM with the highest market share.

According to IDC, global PC shipments fell 11.4% to 75.632 million units versus the same time last year. Despite taking first place, Lenovo still managed to shrink 1.4% YoY due to a 10% decrease in shipments to the Asia/Pacific market (excluding Japan) which makes up about 50% of Lenovo’s market. It still managed to outperform market forecasts by only seeing a slight decrease from 12,802,000 PC shipments in Q2 2012 to 12,619,000 in Q3 2013.

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Because Lenovo’s shipments only decreased 1.4%, it managed to snag 1st place from HP which shrank 7.7% YoY. Lenovo now holds 16.7% of global PC market share versus 15% market share at the same time last year. Comparatively, HP went from 15.7% in Q2 2012 to 16.4% in Q2 2013.  ASUS and Acer actually lost market share and saw decreased global PC shipments of 21.1% and 32.6% respectively.

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In short, Lenovo lost the least amount of shipments in an overall declining market, so it managed to edge out HP and the other major OEMs for top spot. Although it still had a net loss (in number of shipments / growth), it performed quite well this quarter.

More information can be found here.

What do you think about Lenovo earning the most market share for global PC shipments?

Source: EE Times

Windows 8 Market Share Outpaces Vista, but Is Still Far Below Windows 7 and Windows XP

Subject: Editorial, General Tech | July 6, 2013 - 08:33 PM |
Tagged: windows 8, Windows 7, microsoft, desktop market share

A recent report by NetMarketShare indicates that Windows 8 is having a difficult time displacing Microsoft's older operating systems. Of the total market, Windows occupies 91.50% across all existing versions. Windows 7 and Windows XP dominate the Windows market share at 44.37% and 37.17% respectively. Microsoft's latest operating system, Windows 8, is sitting at 5.1%, which barely scratches past Windows Vista at 4.62%. Having more market share than Windows Vista and Windows 98 is good, but it is hardly proving to be as popular as Microsoft hoped for. 

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June 2013 Desktop Operating System Market Share, as measured by NetMarketShare.

Granted, Windows 8 is still a new operating system, whereas XP and Windows 7 have had several years to gain users, be included on multiple generations of OEM machines, and be accepted by the enterprise customers. The free Windows 8.1 update should alleviate some users' concerns and may help bolster its market share as well. However, Windows XP simply will not die and Windows 7 (if talk on the Internet is to be believed, hehe) seems to be good enough for the majority of users, so it is difficult to say when (or if) Microsoft's latest OS will outpace the two existing, and entrenched, Windows operating systems.

YoY, Windows 7 lost 0.33% market share while Windows XP lost 6.44% market share. Meanwhile, Windows 8 has been slowly increasing in market share each quarter since its release. Netmarketshare reported 1.72% market share in December of 2012, and in six months the operating system has grown by 3.38%. There is no direct cause and effect here, but it does suggest that few people are choosing a Windows 8 upgrade path, and that despite the growth, the lost market share for Windows 7 and XP is not solely from people switching to Windows 8, but also some small number of people jumping to alternative operating systems such as Mac OS X and Linux. The historical data is neat, but it is difficult to predict how things will look moving forward. If adoption continues at this pace, it is going to take a long time for Windows 8 to dethrone Microsoft's older Windows XP and Windows 7 operating systems.

How you made the switch to Windows 8 or gotten it on a new machine? Will the Back-to-School shopping season give Windows 8 the adoption rate boost it needs?

Lenovo Reports Record-Breaking Third Fiscal Quarter Results

Subject: General Tech | February 2, 2013 - 10:28 PM |
Tagged: pc sales, Lenovo, desktop market share

Lenovo recently announced the results of its third fiscal quarter (fourth calendar quarter) in a press release on its website. There are several surprising numbers contained in the report, but the gist of it is that Lenovo had a great quarter -- one that lends credence to the future of the traditional PC (despite talk of the post-PC era).

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In Lenovo’s third fiscal quarter, the company sold 14.1 million PCs, made $9.4 billion in sales, and grew to acquire 15.9% of global market share (with worldwide PC shipments increasing by 7.9%). It made a gross profit of $1.1 billion and had an operating profit of $243 million. Lenovo saw a 15% and 26% year-over-year growth in gross and operating profit respectively. Further, Lenovo had $205 million in Q3 earnings, which makes it the company’s best quarter ever. Earnings per share (EPS) currently sits at 1.99 cents.

According to Lenovo, the company has seen rapid growth over the past 13 quarters while simultaneously out-pacing the industry for 15 quarters. Its worldwide tablet sales and Chinese smartphone products have turned profitable, and are continuing to grow. However, desktop PC sales still account for 30% of total sales revenue. Desktop sales increased slightly by 1% year over year in the third quarter to $2.8 billion. Although growth is not as rapid as Lenovo is seeing with its newer tablet and smartphone divisions, the number of desktops sold every quarter is still increasing. And as the world’s third-largest PC OEM, it does suggest that the traditional desktop and laptop computer still has life. Tablets and smartphones will continue to grow, but will likely co-exist with the PC rather than displace it. It will be interesting to see how the other OEMs have faired through 2012 and into 2013!

You can find all of the financial details on the company's press release.

Source: Lenovo