Gartner: Global PC Shipments Down 5.7% in Q3 2016
PC shipments in the Asia-Pacific region decreased by 7.6% compared to the same period last year.

According to preliminary results released by Gartner, global PC shipments in the third quarter of 2016 totaled 68.9 million units, down 5.7% from the same period last year. This marks the eighth consecutive quarter of decline, which Gartner stated is the longest sustained downward trend in the history of the PC industry.

PC manufacturers are facing many challenges, particularly due to weakening demand for personal computers for the new school year in emerging markets and continued weak consumer market demand.

Consumers perceive PCs as unimportant devices

Mikako Mitagawa, a senior researcher at Gartner, stated, “There are two fundamental factors that influenced the results of this PC market. The first is the increased lifespan of PC products due to the oversupply of consumer devices, and the second is the weakening demand for consumer PCs in emerging markets.” She added, “According to the results of Gartner’s 2016 Personal Technology Survey, the majority of consumers in mature markets own or use at least three devices. It was found that most consumers perceive PCs as unimportant devices and do not feel the need to upgrade them as they did in the past.” "Some of them may not upgrade their PCs again," he said.

Visitors are looking at laptop PCs at an exhibition. (Reference photo)

Researcher Mikako Mitagawa added, “Although PC penetration rates in emerging markets are low, consumers do not have much interest in owning a PC. Consumers in emerging markets primarily meet their computing needs through smartphones or tablets and do not feel the need to use PCs as frequently as consumers in mature markets.”

The PC market continues to show a trend of consolidation. The top six PC vendors accounted for 78% of shipments in the third quarter of 2016, the highest figure ever measured (see Table 1). According to preliminary PC shipment figures, Lenovo maintains the number one spot globally, but HP is closely trailing behind. HP's shipments have been growing since the second quarter of 2016.


▲ Table 1. Estimated global PC vendor shipments for Q3 2016 (Units: thousands) Source: Gartner (October 2016)
Note: These figures include desktop PCs, laptops, and premium ultra-mobile products such as Microsoft’s Surface, but exclude Chromebooks and iPads. All figures are based on preliminary research results. Final estimates may differ slightly. The statistics are based on shipments sold through the channel.


In the case of HP, most of its revenue is generated from the enterprise sector, and the stabilization of the enterprise PC market was found to be a major factor in the increase in overall shipments. Dell's shipment growth figures exceeded the regional average in most regions.

Total PC shipments in the U.S. market in the third quarter of 2016 recorded 16.2 million units, down 0.3% from the same period of the previous year (see Table 2). This indicates that there has been no change in the year-on-year growth of PC shipments for two consecutive quarters.

Researcher Kitagawa stated, “While the mobile PC segment, including laptops, 2-in-1 PCs, and Windows tablets, showed sluggish single-digit growth compared to the previous year, the overall results were offset by a decline in desktop shipments.” He explained, “PC growth in the third quarter was driven by back-to-school sales, but the effectiveness of related marketing campaigns driving sales has diminished.” He added, “Consumers in the U.S. do not feel the need to purchase new products due to the numerous PCs already on the market, with many parents passing down their old computers to their children.” Although Chromebooks were not included in this Gartner report, initial indicators suggest that Chromebook shipment growth has surpassed that of PCs.


▲ Table 2. Estimated PC Vendor Shipments in the U.S. Market, Q3 2016 (Units: Thousands) Source: Gartner (October 2016)
Note: These figures include desktop PCs, laptops, and ultra-mobile premium products such as Microsoft’s Surface, but exclude Chromebooks and iPads. All figures are based on preliminary research results. Final estimates may vary slightly. These statistics are based on shipments sold through the channel.

PC shipments in the Asia-Pacific market for the third quarter of 2016 totaled 24.7 million units, down 7.6% from the same period of the previous year. Initial indicators suggest that PC vendors showed improved performance compared to the second quarter by lowering channel inventories while adequately responding to demand driven by the start of the new school year. In China, PC shipments were estimated to have decreased by 4.8%. Sales in the Chinese consumer market were led by notebook shipments, while the enterprise market was driven by desktop PCs due to cost and computing efficiency.

PC shipments in the EMEA region in the third quarter of 2016 totaled 19.2 million units, down 3.3% from the same period of the previous year. The decline in the EMEA market was attributed to severely weak demand in Eastern Europe, Eurasia, and the Middle East and Africa. While Brexit had little impact on the PC market in the UK during the third quarter, the sharp drop in the value of the pound against the dollar led some PC manufacturers to signal plans to raise prices from the end of this year through next year.