Gartner Inc., the market research firm, recently reported that there was a 9.5% decrease in global personal computer (PC) shipments in the second quarter of calendar year 2015 (CY15). The decline in the corporate technology spending and the FX headwinds is because of a stronger dollar position. The introduction of Microsoft Corporation’s (NASDAQ:MSFT) Windows 10 in 3QCY15 may not boost the PC market as it traditionally has, because many PC owners would rather go for an upgrade to Windows 10 than purchase a new PC.
Bloomberg quotes Gartner, which disclosed that a total of 68.4 million shipments were sent out during 2Q by PC vendors, compared to 75.6 million in 2QCY14. This dip is the sharpest quarterly decline since the third quarter of 2013. In the US, PC unit sales also fell by 5.8% to 15.1%, hitting the desktop PCs industry pretty hard.
This plummet in shipments reflects an increasingly challenging time for PC makers, as computing on smartphones and tablets get increasingly popular. In emerging economies, especially the BRICS group, the rising middle class consumers are moving towards mobile computing over PC usage. The biggest shift is by the corporations that have moderated their spending on PC upgrades. Bloomberg forecasts show that PC shipments are headed for their fourth straight quarterly decline in 2015.
Gartner analyst, Mikako Kitagawa, stated in an interview: “When people look at the market decline by 10 percent they will say, ‘Oh my God this year is going to be dead’, that’s not true. We think the market is going to go to a low- single-digit growth in 2016 and ongoing because fundamentally people are going to keep buying PCs. But market size is shrinking due to different devices.”
The decrease in PC shipments is affecting the companies that are producing microprocessors, including Advanced Micro Devices, Inc. (NASDAQ:AMD) and Micron Technology, Inc. (NASDAQ:MU). On Monday, AMD actually lowered its quarterly sales forecast.
The highest share in the PC market is held by Lenovo Group Limited (OTCMKTS:LNVGY), which has a 19.7% share of the market; it managed to ship 13.5 million PCs during the second quarter, with a decrease of 6.8% year-over-year (YOY). Hewlett-Packard Company (NYSE:HPQ), on the other hand, had 11.9 million unit shipments, down 9.5% YoY. As mobile sales (and mobile computing) increases, it remains to be seen how extensively it affects the PC market.
Bloomberg quotes Gartner, which disclosed that a total of 68.4 million shipments were sent out during 2Q by PC vendors, compared to 75.6 million in 2QCY14. This dip is the sharpest quarterly decline since the third quarter of 2013. In the US, PC unit sales also fell by 5.8% to 15.1%, hitting the desktop PCs industry pretty hard.
This plummet in shipments reflects an increasingly challenging time for PC makers, as computing on smartphones and tablets get increasingly popular. In emerging economies, especially the BRICS group, the rising middle class consumers are moving towards mobile computing over PC usage. The biggest shift is by the corporations that have moderated their spending on PC upgrades. Bloomberg forecasts show that PC shipments are headed for their fourth straight quarterly decline in 2015.
Gartner analyst, Mikako Kitagawa, stated in an interview: “When people look at the market decline by 10 percent they will say, ‘Oh my God this year is going to be dead’, that’s not true. We think the market is going to go to a low- single-digit growth in 2016 and ongoing because fundamentally people are going to keep buying PCs. But market size is shrinking due to different devices.”
The decrease in PC shipments is affecting the companies that are producing microprocessors, including Advanced Micro Devices, Inc. (NASDAQ:AMD) and Micron Technology, Inc. (NASDAQ:MU). On Monday, AMD actually lowered its quarterly sales forecast.
The highest share in the PC market is held by Lenovo Group Limited (OTCMKTS:LNVGY), which has a 19.7% share of the market; it managed to ship 13.5 million PCs during the second quarter, with a decrease of 6.8% year-over-year (YOY). Hewlett-Packard Company (NYSE:HPQ), on the other hand, had 11.9 million unit shipments, down 9.5% YoY. As mobile sales (and mobile computing) increases, it remains to be seen how extensively it affects the PC market.
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