Gartner reports that global PC shipments in the fourth quarter of 2015 declined 8.3% year-over-year.

According to preliminary results released by Gartner Inc., a global IT advisory firm, worldwide PC shipments totaled 75.7 million units in the fourth quarter of 2015, an 8.3% decrease from the fourth quarter of 2014. Total PC shipments for the year totaled 288.7 million units, an 8% decrease from 2014.

“The fourth quarter of 2015 marked the fifth consecutive quarter of decline in global PC shipments,” said Mikako Kitagawa, research director at Gartner. “Holiday sales did not boost overall PC shipments, and consumer purchasing behavior changed. In the enterprise market, Windows 10 received generally positive reviews, but migration to Windows 10 was slow during the quarter, with many enterprises just beginning to test it.” Kitagawa explained, “Shipments declined across all regions. “The currency devaluation issue has had a lasting impact on EMEA (Europe, Middle East, Africa), South America and Japan,” he said, adding that “the EMEA, Japan and South America markets decreased by approximately 10% in 2015.”

▲An exhibition visitor is looking at a laptop PC.

Gartner forecasts that PC shipments will decline 1% year-over-year in 2016, with a potential for a mild recovery in the second half of 2016. Researcher Kitagawa predicts that the PC market is still undergoing structural change, which will lead to a decline in PC installations in the coming years.

The number of PC installations will decline in the coming years.

Lenovo's global PC shipments declined for the third consecutive quarter in the fourth quarter of 2015. However, the decline was relatively small compared to the industry average, strengthening Lenovo's market dominance. Lenovo accounted for 20.3% of global PC shipments in the fourth quarter of 2015 (see Table 1). Lenovo performed particularly well in North America, offsetting shipment declines in EMEA, Latin America, and Japan.


▲ Table 1. Estimated worldwide PC shipments for Q4 2015 (in thousands of units) Source: Gartner (January 2016)

HP's fourth-quarter PC shipments declined across all regions worldwide. Excluding the US, regional declines were generally similar to or smaller than the regional average. The unusually high shipments in Q4 2014 were driven by low-priced Bing notebooks targeting the holiday season, ultimately contributing to the sharp decline in the US market in Q4 2015.

Dell's PC shipments declined in all regions except Japan, where it recorded single-digit growth compared to the fourth quarter of 2014. Dell saw shipment declines in EMEA and the US, but at a smaller rate than the regional average.

PC shipments in the US market totaled 16.9 million units in the fourth quarter of 2015, a 3.1% year-over-year decline (see Table 2). Despite an 8.4% shipment decline, HP maintained its top spot, accounting for 27.1% of total PC shipments in the US market. Dell maintained its second-place position in the US market, recording a smaller shipment decline than the industry average.


▲ Table 2. Estimated PC shipments by U.S. vendors in the fourth quarter of 2015 (unit: thousands of units) Source: Gartner (January 2016)

Researcher Kitagawa stated, "The peak holiday season had a minimal impact on PC sales in the US market. Laptops were excluded from the list of most desired holiday gifts. Unlike the 2014 peak holiday season, laptops, especially low-priced models, did not lead to large-scale purchases. “Consumers’ attention has shifted to other home appliances such as TVs and wearables,” he noted.

Consumers' attention has shifted to TVs and wearables.

The Asia-Pacific PC market declined 1.5% year-over-year to 26 million units in the fourth quarter of 2015. Consumers appear to be slow to replace their PCs with the latest Windows 10 models. PC vendors are prioritizing profitability over shipment volume, focusing on segments such as gaming PCs, desktops with larger monitor screens, and ultramobile devices. Preliminary research indicates that the Chinese PC market declined 4.7% year-over-year in the fourth quarter of 2015.


▲ Table 3. Estimated global PC shipments in 2015 (unit: thousands of units) Source: Gartner (January 2016)

Global PC shipments, which began with the launch of tablets in 2012, have declined for four consecutive quarters this year. Researcher Kitagawa stated, "The devaluation of various currencies in 2015 also played a critical role in worsening the market situation. EMEA, Japan, and Latin America are facing severe impacts from currency devaluation, recording double-digit declines in 2015. “Conversely, the US and Asia Pacific regions experienced relatively small declines, with declines in the low single digits or near-single digits, unaffected by currency issues,” it said.

The top six vendors expanded their share of the global PC market in 2015. They accounted for 73.1% of shipments in 2015, up from 70.4% in 2014 (see Table 3). Lenovo maintained its top spot with 19.8% of PC shipments, followed by HP with 18.2%. Dell ranked third with 13.6%.