SYS-CON MEDIA Authors: Yeshim Deniz, Zakia Bouachraoui, Liz McMillan, Janakiram MSV, Carmen Gonzalez

News Feed Item

Traditional PC Market Grows 2.7% in the Second Quarter of 2018, Strongest Rate Since Q1 2012, According to IDC

Preliminary results for the second quarter of 2018 (2Q18) showed shipments of traditional PCs (desktop, notebook, and workstation) totaled 62.3 million units, recording solid year-on-year growth of 2.7%, according to the International Data Corporation (IDC) Worldwide Quarterly Personal Computing Device Tracker. The results exceeded IDC's forecast of 0.3% growth and marks the strongest year-on-year growth rate in more than six years, when the first quarter of 2012 posted growth of 4.2%.

Although helped to some extent by a weak second quarter in 2017, which was somewhat impacted by key component issues, the 2Q18 results decidedly bucked the trend from the previous three quarters, which had the market hovering slightly above or below flat growth. Once again business volume appeared to be the key driver with the top three companies reaping benefits across both desktop and notebook. Moreover, the market continued to grow for both premium as well as entry models. Chrome OS-based devices, premium notebooks, and gaming PCs all further fueled the mix in the wake of improved supply and prices of graphic cards.

Not surprisingly, the recovery is relegated to the highest echelon of the market as the top 5 companies all posted positive year-on-year growth, collectively growing over 7% and capturing nearly 78% of the overall market. Scale, be it in the form of purchasing power to reduce costs, obtain scarce components, or channel reach, continued to be the catalyst for industry consolidation. From a geographic perspective, all regions exceeded forecast, with both mature and emerging markets seeing good activity. The US market delivered another growth quarter after coming in just below flat in 2017.

"Although traditional PCs may not be the default device for many usage scenarios, the market continues to show pockets of resiliency as PC usage experience evolves and improves," said Jay Chou, research manager with IDC's Personal Computing Device Tracker. "Even certain types of desktops are seeing growth amid this business-driven refresh cycle."

"Results for the first half of 2018 have been encouraging for the US PC market despite market challenges that surfaced including expected slowdown of Chromebooks amid production inhibitors," said Neha Mahajan, senior research analyst, Devices & Displays. "And with sentiment looking improved for the second half of the year, the US could deliver a strong market performance for the year."

Regional Highlights

USA – The traditional PC market registered its second consecutive quarter of year-on-year shipment growth with a total of 17.3 million units. The desktop market saw shipments rising after a long decline with growth being driven by increased commercial purchases and supported by growing consumer demand for gaming systems. The enterprise shift to Windows 10 and an overall positive economic environment also helped maintain momentum on the notebook side.

Europe, the Middle East and Africa (EMEA) – The traditional PC market experienced modest growth, owing to a further wave of device renewals in the commercial space. Despite the trend toward mobility, desktops once again played a strong role in driving the overall performance of the market.

Asia/Pacific (excluding Japan) (APeJ) – The traditional PC market came close to IDC's forecast, supported by positive results in India, where better than expected consumer demand and good traction in the commercial market drove shipments. Meanwhile, the Department of Education project contributed to a strong increase in the commercial space in the Philippines. The PC market in China performed above expectations, as better than forecasted sales and the launch of new models during the 618 Festival contributed to higher sell-in of consumer notebooks. On the other hand, the China commercial PC market remained impacted by weak shipments to SMBs and the public sector.

Japan – The market came in above expectations as commercial demand helped desktop and notebooks alike to exceed the forecast.

Company Highlights

HP Inc. continued see results from its strong portfolio and execution. It extended its streak of consecutive quarters of year-on-year growth, further cementing its hold over all others in the market. HP Inc. grew 7.6% on the year with growth in all regions.

Lenovo whose majority stake in its joint venture with Fujitsu took effect in 2Q18, came off with a good start. The company rode the wave of healthy refresh momentum in Japan as well as recovering channel efforts in North America to grow 11.3% year on year (which includes Fujitsu volume beginning in 2Q18). All regions showed year-on-year growth.

Dell Inc., following a good 1Q18 result, posted strong growth of 9.0%, buoyed by strong performances in nearly all regions.

Apple finished the quarter in the 4th position with nearly flat year-on-year growth.

Acer held the 5th position, growing 1.3% year on year. Its focus on gaming and Chrome continues to help, but weakness on the commercial side also deprives it of much of the current market momentum.

 

Top Companies, Worldwide Traditional PC Shipments, Market Share and Year-Over-Year Growth, Second Quarter 2018 (Preliminary results, shipments are in thousands of units)

Company      

2Q18
Shipments

     

2Q18 Market
Share

     

2Q17
Shipments

     

2Q17 Market
Share

     

2Q18/2Q17
Growth

1. HP Inc.

      14,864       23.9%       13,812       22.8%       7.6%
2. Lenovo*       13,755       22.1%       12,362       20.4%       11.3%

3. Dell Inc.

      11,255       18.1%       10,329       17.0%       9.0%
4. Apple       4,308       6.9%       4,303       7.1%       0.1%
5. Acer Group       4,197       6.7%       4,144       6.8%       1.3%
Others       13,890       22.3%       14,991       24.7%       -7.3%
Total       62,269       100.0%       60,624       100.0%       2.7%
                                         
Lenovo + Fujitsu**       13,755       22.1%       13,045       21.5%       5.4%
Source: IDC Quarterly Personal Computing Device Tracker, July 12, 2018

Table Notes:

* Starting in Q2 2018, Lenovo volume includes Fujitsu as per their joint venture.

** For year-on-year comparison, an extra line has been added below the table to show what Lenovo's growth would have looked like had its acquisition of Fujitsu been completed prior to the start of the 2Q18 quarter.

  • Some IDC estimates prior to financial earnings reports. Data for all companies are reported for calendar periods.
  • Shipments include shipments to distribution channels or end users. OEM sales are counted under the company/brand under which they are sold.
  • Traditional PCs include Desktops, Notebooks, and Workstations and do not include Tablets or x86 Servers. Detachable Tablets and Slate Tablets are part of the Personal Computing Device Tracker but are not addressed in this press release.

In addition to the table above, a graphic illustrating the worldwide market share of the top 5 traditional PC companies over the previous five quarters is available by viewing this press release on IDC.com.

IDC's Worldwide Quarterly Personal Computing Device Tracker gathers detailed market data in over 90 countries. The research includes historical and forecast trend analysis among other data.

For more information, or to subscribe to the research, please contact Kathy Nagamine at 650-350-6423 or [email protected].

About IDC Trackers
IDC Tracker products provide accurate and timely market size, company share, and forecasts for hundreds of technology markets from more than 100 countries around the globe. Using proprietary tools and research processes, IDC's Trackers are updated on a semiannual, quarterly, and monthly basis. Tracker results are delivered to clients in user-friendly excel deliverables and on-line query tools.

About IDC
International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly-owned subsidiary of International Data Group (IDG), the world's leading media, data and marketing services company that activates and engages the most influential technology buyers. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC and LinkedIn.

All product and company names may be trademarks or registered trademarks of their respective holders.

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
The graph represents a network of 1,329 Twitter users whose recent tweets contained "#DevOps", or who were replied to or mentioned in those tweets, taken from a data set limited to a maximum of 18,000 tweets. The network was obtained from Twitter on Thursday, 10 January 2019 at 23:50 UTC. The tweets in the network were tweeted over the 7-hour, 6-minute period from Thursday, 10 January 2019 at 16:29 UTC to Thursday, 10 January 2019 at 23:36 UTC. Additional tweets that were mentioned in this...
BMC has unmatched experience in IT management, supporting 92 of the Forbes Global 100, and earning recognition as an ITSM Gartner Magic Quadrant Leader for five years running. Our solutions offer speed, agility, and efficiency to tackle business challenges in the areas of service management, automation, operations, and the mainframe.
At CloudEXPO Silicon Valley, June 24-26, 2019, Digital Transformation (DX) is a major focus with expanded DevOpsSUMMIT and FinTechEXPO programs within the DXWorldEXPO agenda. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term. A total of 88% of Fortune 500 companies from a generation ago are now out of business. Only 12% still survive. Similar percentages are found throug...
The standardization of container runtimes and images has sparked the creation of an almost overwhelming number of new open source projects that build on and otherwise work with these specifications. Of course, there's Kubernetes, which orchestrates and manages collections of containers. It was one of the first and best-known examples of projects that make containers truly useful for production use. However, more recently, the container ecosystem has truly exploded. A service mesh like Istio a...
Technology has changed tremendously in the last 20 years. From onion architectures to APIs to microservices to cloud and containers, the technology artifacts shipped by teams has changed. And that's not all - roles have changed too. Functional silos have been replaced by cross-functional teams, the skill sets people need to have has been redefined and the tools and approaches for how software is developed and delivered has transformed. When we move from highly defined rigid roles and systems to ...
After years of investments and acquisitions, CloudBlue was created with the goal of building the world's only hyperscale digital platform with an increasingly infinite ecosystem and proven go-to-market services. The result? An unmatched platform that helps customers streamline cloud operations, save time and money, and revolutionize their businesses overnight. Today, the platform operates in more than 45 countries and powers more than 200 of the world's largest cloud marketplaces, managing mo...
Docker and Kubernetes are key elements of modern cloud native deployment automations. After building your microservices, common practice is to create docker images and create YAML files to automate the deployment with Docker and Kubernetes. Writing these YAMLs, Dockerfile descriptors are really painful and error prone.Ballerina is a new cloud-native programing language which understands the architecture around it - the compiler is environment aware of microservices directly deployable into infra...
The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development cycles that produce software that is obsolete at launch. DevOps may be disruptive, but it is essential. DevOpsSUMMIT at CloudEXPO expands the DevOps community, enable a wide sharing of knowledge, and educate delegates and technology providers alike.
The platform combines the strengths of Singtel's extensive, intelligent network capabilities with Microsoft's cloud expertise to create a unique solution that sets new standards for IoT applications," said Mr Diomedes Kastanis, Head of IoT at Singtel. "Our solution provides speed, transparency and flexibility, paving the way for a more pervasive use of IoT to accelerate enterprises' digitalisation efforts. AI-powered intelligent connectivity over Microsoft Azure will be the fastest connected pat...
Apptio fuels digital business transformation. Technology leaders use Apptio's machine learning to analyze and plan their technology spend so they can invest in products that increase the speed of business and deliver innovation. With Apptio, they translate raw costs, utilization, and billing data into business-centric views that help their organization optimize spending, plan strategically, and drive digital strategy that funds growth of the business. Technology leaders can gather instant recomm...
At CloudEXPO Silicon Valley, June 24-26, 2019, Digital Transformation (DX) is a major focus with expanded DevOpsSUMMIT and FinTechEXPO programs within the DXWorldEXPO agenda. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term. A total of 88% of Fortune 500 companies from a generation ago are now out of business. Only 12% still survive. Similar percentages are found throug...
As you know, enterprise IT conversation over the past year have often centered upon the open-source Kubernetes container orchestration system. In fact, Kubernetes has emerged as the key technology -- and even primary platform -- of cloud migrations for a wide variety of organizations. Kubernetes is critical to forward-looking enterprises that continue to push their IT infrastructures toward maximum functionality, scalability, and flexibility. As they do so, IT professionals are also embr...
In today's always-on world, customer expectations have changed. Competitive differentiation is delivered through rapid software innovations, the ability to respond to issues quickly and by releasing high-quality code with minimal interruptions. DevOps isn't some far off goal; it's methodologies and practices are a response to this demand. The demand to go faster. The demand for more uptime. The demand to innovate. In this keynote, we will cover the Nutanix Developer Stack. Built from the foundat...
CloudEXPO has been the M&A capital for Cloud companies for more than a decade with memorable acquisition news stories which came out of CloudEXPO expo floor. DevOpsSUMMIT New York faculty member Greg Bledsoe shared his views on IBM's Red Hat acquisition live from NASDAQ floor. Acquisition news was announced during CloudEXPO New York which took place November 12-13, 2019 in New York City.
ShieldX's CEO and Founder, Ratinder Ahuja, believes that traditional security solutions are not designed to be effective in the cloud. The role of Data Loss Prevention must evolve in order to combat the challenges of changing infrastructure associated with modernized cloud environments. Ratinder will call out the notion that security processes and controls must be equally dynamic and able to adapt for the cloud. Utilizing four key factors of automation, enterprises can remediate issues and impro...