Lenovo beats HP to regain lead in PC market share in Q2 2013

Lenovo has overtaken HP to regain lead in the global PC market share in Q2 2013.

The Chinese PC brand has 16.7 percent market share in the second quarter of 2013 against 14.9 percent in the same quarter last year, Gartner said.

The second largest player — HP’s PC market share increased to 16.3 percent from 15.3 percent during the same period.

Dell’s PC market share increased marginally to 11.8 percent from 11 percent.

According to Gartner, worldwide PC shipments dropped to 76 million units in the second quarter of 2013, a 10.9 percent decrease from the same period last year. Tablet market has started eating into the growth of PC makers.

All regions showed a decline compared to a year ago.

The fall in the Asia/Pacific PC market continued, showing five consecutive quarters of the shipment decline, while the EMEA PC market registered two consecutive quarters of double-digit decline.

“In emerging markets, inexpensive tablets have become the first computing device for many people, who at best are deferring the purchase of a PC. This is also accounting for the collapse of the mini notebook market,” said Mikako Kitagawa, principal analyst at Gartner.

Growth strategies of PC makers

Lenovo experienced strong growth in the Americas and EMEA, while showing a major decline in Asia/Pacific.

Weakness in China was most likely the contributor of Lenovo’s shipment decline in the region as the majority of Lenovo’s volume came from China.

HP is a market leader in key regions including the U.S., EMEA and Latin America. Asia/Pacific has been a weakness the last three years for HP, but preliminary second quarter results suggest an improvement of their performance in the region.

Table 1
Preliminary Worldwide PC Vendor Unit Shipment Estimates for 2Q13 (Units)
       2Q13       2Q13 Market       2Q12       2Q12 Market       2Q12-2Q13
Company       Shipments       Share (%)       Shipments       Share (%)       Growth (%)
Lenovo12,677,26516.712,755,06814.9-0.6
HP12,402,88716.313,028,82215.3-4.8
 Dell8,984,63411.89,349,17111.0-3.9
Acer Group6,305,0008.39,743,66311.4-35.3
ASUS4,590,0716.05,772,0436.8-20.5
Others31,041,13040.834,675,82440.6-10.5
Total       76,000,986       100.0       85,324,591       100.0       -10.9

Note: Data includes desk-based PCs and mobile PCs, including mini-notebooks but not media tablets such as the iPad.
Source: Gartner (July 2013)

Dell showed good growth in the U.S. and Japan, but struggled to increase shipments in Asia/Pacific and EMEA.

Both Acer and ASUS showed steep declines compared to the second quarter last year. The decline was partly affected by their strategies to exit the mini-notebook market.

In Asia/Pacific, PC shipments surpassed 26.8 million units in the second quarter of 2013, an 11.5 percent decline from the first quarter of 2012. All country markets across the region showed weakness, but India performed slightly better due to a state PC tender fulfillment. China’s PC shipment remained weak as the consumer market was hampered with lack of new demand generation programs, such as subsidized PC program in the rural cities, according to Gartner.

Future Optimistic

IDC says that HP and Dell saw growth improve over recent quarters, possibly indicating stronger performance in coming quarters and reflecting more commercial replacements as we get closer to the end of Windows XP support.

Market leader Lenovo grew faster than the market (as well as faster than HP and Dell) although Lenovo growth slipped below zero at -1.4 percent and was down from prior quarters. Slow growth for Lenovo reflects the company’s focus on China, which represents over 50 percent of Lenovo shipments, and where short-term economic and inventory hurdles cut into Q2 2013 shipments.

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