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

Traditional PC shipments continue their steep decline

Subject: General Tech | December 5, 2013 - 10:31 AM |
Tagged: sales, pc sales, market share

The PC market has eroded over the past few years to the point where sales are only slightly above what they were in 2008, roughly 300 million sales.  Even more worrisome for vendors is the predicted 10.1% decline predicted for the overall sales in 2013.  DigiTimes cites a lack of reasons to upgrade being a root cause and to an extent that makes sense, a first generation i5 laptop will still compete with a current generation laptop with an equivalent Haswell model.  Another reason is the changing market, with tablets and phones providing good enough connectivity for many who previously would have had to purchase a 'traditional' computer.  Commercial sales are not declining as quickly yet but that could change with the spread of the BYOD disease.

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"Worldwide PC shipments are expected to fall by 10.1% in 2013, slightly below the previous projection of 9.7%, and by far the most severe yearly contraction on record, according to IDC. Interest in PCs has remained limited, leading to little indication of positive growth beyond replacement of existing systems. Total shipments are expected to decline by an additional 3.8% in 2014 before turning slightly positive in the longer term."

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Source: DigiTimes

More on the dearth of the PC

Subject: General Tech | July 16, 2013 - 09:49 AM |
Tagged: decline, pc sales

DigiTimes offers up more detailed information on the decline of PC sales globally, dropping over the past five consecutive quarters in almost every market.  They refute the idea that Win8 is somehow to blame for this decrease, while it might convince some shoppers to be more picky about the system they purchase and the installed OS on the machine it is not going to prevent someone from upgrading an old system.  As mentioned before the decline is much more likely caused by the increasing capabilities of smartphones and tablets which are not counted as PCs when these figures were compiled.  Interestingly the EMEA might be seeing a slight increase in sales thanks to the approaching EOL of WinXP as businesses are forced to upgrade machines to be compatible with Win7.  As well the growth in sales that Lenovo has seen in the US and EMEA have been accompanied by a drop in their home territory in the AP. 

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"Worldwide PC shipments dropped to 76 million units in the second quarter of 2013, a 10.9% decrease from the same period in 2012, according to preliminary results from Gartner. This marks the fifth consecutive quarter of declining shipments, which is the longest duration of decline in the PC market's history."

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Source: DigiTimes

The continuing decline in desktop sales

Subject: General Tech | July 11, 2013 - 11:42 AM |
Tagged: fud, desktops, pc sales

For the fifth quarter in a row, traditional desktops and laptop have seen a decline in sales globally.  This mostly represents a shift in purchasing habits as opposed to an actual decline in the sales of electronics.  Desktops have declined in sales since laptops became much more affordable and a decent alternative for light users who have no need for a powerful desktop.  Now that tablets and smartphones are capable of providing the same experience to many users as a desktop or notebook, consumers are purchasing those devices which has lead to the perceived drop in sales.  No matter what the various talking heads may claim the desktop is not dead, no tablet on the planet can play Crysis nor will it handle SPSS.  Check out the comments at Slashdot for more entertaining thoughts on the supposed death of the desktop.

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"Global personal computer (PC) sales have fallen for the fifth quarter in a row, making it the 'longest duration of decline' in history. Worldwide PC shipments totalled 76 million units in the second quarter, a 10.9% drop from a year earlier, according to research firm Gartner. PC sales have been hurt in recent years by the growing popularity of tablets. Gartner said the introduction of low-cost tablets had further hurt PC sales, especially in emerging economies. 'In emerging markets, inexpensive tablets have become the first computing device for many people, who at best are deferring the purchase of a PC,' said Mikako Kitagawa, principal analyst at Gartner, said in a statement."

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Source: Slashdot

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