Lenovo retains lead in PC shipments in Q3 2016

Global PC shipments stood at 68.9 million units in the third quarter of 2016, a 5.7 percent decline from the third quarter of 2015, market research firm Gartner said on Wednesday.

“There are two fundamental issues that have impacted PC market results — the extension of the lifetime of the PC caused by the excess of consumer devices, and the weak PC consumer demand in emerging markets,” said Mikako Kitagawa, Principal Analyst at Gartner.

This is the eighth consecutive quarter of PC shipment decline, the longest duration of decline in the history of the PC industry, according to Gartner.

Consumers in emerging markets primarily use smartphones or phablets for their computing needs, and they do not find the need to use a PC, added Kitagawa.

Lenovo continued to be the worldwide market leader with a market share of 20.9 percent based on preliminary PC shipments, but HP Inc. with market share of 20.4 percent is nearly tied for this top spot.

Dell stood third with 14.7 percent market share and ASUS stood at fourth position with 7.8 percent market share in third quarter of this year.

Apple with 7.2 percent market share stood at fifth position, the report said.

IDC report on PC sales

IDC said the global PC shipments fell 3.9 percent to nearly 68 million units. The top 3 PC vendors took just over 58 percent of the worldwide market in the third quarter, up from 55 percent a year ago and 51 percent in 2014.
United States took the lead with second consecutive quarter of positive growth in PC market. In other developed markets growth was stable or improved slightly with near flat growth in Japan and Canada, followed by a small decline in Europe, the Middle East and Africa (EMEA). Shipments in Asia/Pacific (excluding Japan) continued to decline in mid-single digits while Latin America struggled with double-digit declines.

Lenovo held onto the top spot, though its lead over HP diminished to the smallest margin since Lenovo took the top position in 2013.

Slower growth in China (where Lenovo has its largest share) has made it more difficult for Lenovo to defend its market lead. The recent third quarter of 2016 marked Lenovo’s sixth consecutive year-on-year decline in total shipments, trailing other market leaders who have returned to positive growth. Nevertheless, Lenovo continues to outpace the market and has made strong gains in key markets like the United States.

HP had a solid quarter with 3.3 percent growth globally. HP Inc. further consolidated its dominance of the U.S. market, where it grew 5.8 percent and boosted share to almost 30 percent for the first time. The company also saw gains in EMEA and Japan.

Dell had a productive quarter with shipments of 10.7 million units, its second highest quarterly shipment volume since 2011. In 3Q16, Dell saw strong gains in Japan and the United States while EMEA and Latin America also improved.

Apple shipments continued to decline as the company prepares to refresh its PCs.

ASUS also continued to gain share overall with shipments increasing over 5.2 percent in 3Q16. Rebounding shipments in Japan captured the company’s highest growth, but substantial gains in the United States, EMEA, and Canada delivered important gains with higher volume – helping to offset challenges in Asia/Pacific (excluding Japan) and Latin America.