Gartner Announces Decline in Notebook PCs and Premium Ultramobile Markets as Well

According to Gartner, Inc., a global IT advisory firm, the estimated global PC shipments for the third quarter of 2015 are projected to reach 73.7 million units, a 7.7% decrease compared to the same period last year.

Desktop PC shipments continued to show weakness, recording a single-digit decline, while notebook PCs and premium ultra-mobile devices (including the MacBook Air and Microsoft Surface Pro) also recorded single-digit declines, though not as severe as desktop PCs.

Reasons for the approximately 10% increase in PC prices

"As the value of the U.S. dollar rose sharply, PC prices in global markets increased by about 10%. This trend continued into the third quarter of 2015, acting as a major factor weakening PC demand in some regions. As a result, PC shipments in EMEA, Japan, and South America recorded double-digit declines in the third quarter of 2015. Shipments in the Asia-Pacific region and the U.S. remained somewhat stable," said Mikako Kitagawa, a senior researcher at Gartner.

The impact of Windows 10, released in the third quarter of 2015, was minimal. Gartner stated that the launch of Windows 10 focused on upgrading existing PC operating systems to Windows 10 rather than installing Windows 10 on new PCs. Sales of Windows 10 are expected to increase during the year-end sales in the fourth quarter of 2015.

While the results for the third quarter of 2015 show a pessimistic outlook for the PC market, there are also positive aspects. According to the '2015 Personal Technology Survey' conducted by Gartner, 50% of consumers expressed an intention to purchase a PC within the next 12 months, whereas only 21% expressed an intention to purchase a tablet.

Researcher Kitagawa stated, "The shift in consumer preference toward PCs is also evident in preliminary survey results showing growth in U.S. laptop and premium ultramobile shipments. A moderate recovery is expected starting in the fourth quarter of 2015, when Windows 10 product upgrades begin in earnest. PC manufacturers must prepare for next year to avoid being affected by the price surge observed in 2015. Such preparation will help stabilize future market conditions."


Table. Estimated Global PC Vendor Shipments, Q3 2015 (Units: Thousands) Source: Gartner October 2015
The above data includes desktop-based PCs, laptop PCs, and ultra-mobile premiums.

Lenovo maintained its position as the number one company in global PC shipments, despite a 4% decrease in shipments in the third quarter of 2015, as its market share increased to 20.3%. (See Table 1) Although Lenovo struggled with double-digit sales declines in EMEA and Japan, it compensated for the sluggishness in the two regions by achieving 22% growth in the U.S. market. Lenovo launched detachable laptops and hybrid laptops that encompass products across various price points.

HP maintained its position as the second-largest PC shipper globally. It recorded a market share of 18.5%, while shipments decreased by 4%. HP offset weak shipments in the EMEA region with growth in the Asia-Pacific and U.S. markets. As the world's third-largest vendor, Dell recorded shipments similar to the previous year. While Dell achieved above-average performance in most regions, it saw a double-digit decline in Japan. However, it recorded growth rates higher than the regional average in the Asia-Pacific and U.S. regions.

Lenovo, 22% Growth in the US Market

U.S. PC shipments in the third quarter of 2015 recorded 17 million units, a 1.3% increase compared to the same period last year. Similar to global market trends, the U.S. market also showed growth in the notebook and premium ultra-mobile sectors, but this growth was offset by a decline in desktop PC shipments.


graph. Estimated PC Vendor Shipments in the U.S. Market, Q3 2015 (Units: Thousands) Source: Gartner October 2015
The above data includes desktop-based PCs, laptop PCs, and ultra-mobile premiums.

HP maintained its top position in the industry, accounting for 27.8% of U.S. PC market shipments. Driven by strong growth in hybrid products, Lenovo saw its PC shipments increase by 32%, recording the highest growth rate among the top five vendors in the U.S.

PC shipments in the EMEA region in the third quarter of 2015 recorded 20 million units, a 15.7% decrease compared to the same period of the previous year. Maintaining high price points combined with currency depreciation are the main causes of sluggish sales in the EMEA region. Inventory accumulated since the first half of 2015 is expected to be somewhat released in the third quarter. The back-to-school sales season in Western Europe fell into a slump as many companies postponed the launch of new products until after September to clear large amounts of inventory.

PC shipments in the Asia-Pacific region in the third quarter of 2015 totaled 26.3 million units, down 1.7% from the same period last year. Consumers are showing caution in spending due to the economic downturn and exchange rate fluctuations. While mobile PC shipments in the Asia-Pacific region increased by 2.2%, desktop-based PC shipments decreased by 4.9%.