PC Market Falls by 11.8 Percent in Q2: IDC Reports!

PC Market Falls by 11.8 Percent in Q2: IDC Reports!


With the total shipment of 66.1 million units in the second quarter of 2015, the worldwide PC market has been witnessing fresh challenges in the wake of the new session. The data presented by International Data Corporation (IDC) in its Worldwide Quarterly PC Tracker reflected some serious concerns. While the release of Window 10 is round the corner, what impacts will the downfall bring? What will be the consequences on big brands like Apple and Lenovo?

The data that was recently presented by IDC reflected a year-on-year decline of -11.8%! The rate of decline was almost one percent below than the earlier projections made for the present quarter. According to the company, the size of the decline reflects a stronger second quarter in the year-ago period- all because of the impact created after the death of Window XP. The data informs the sale of 66.1 million PCs within the duration of three months. Not to forget that IDC doesn’t count the ‘handhelds, x86 Servers or Tablets’ in the list of PC. It means that all the detachable devices (that comes with the support of removable keyboard) are not in the list of devices listed by IDC.

According to Loren Loverde, Vice President, Worldwide PC Trackers & Forecasting, the company was expecting the fall in mid-single digit volumes during the second half of the year but for the future, they are expecting more stability now. As soon as the Window 10 launch is ready to hit the market this month, many users will opt for a free OS upgrade (rather than showing their interest in buying a new PC. On the other hand, the competition that the market is facing from three to two devices will still remain a prominent issue. The situation has profoundly affected the economic environment, and it will either make the market more stable or will fetch the feathers of improvement.


The Highlights of the Report:

Impact on the US market- According to the reports, the US market was absolutely following the line with forecasts- almost a year ago, it declined -3.3% after avoiding the global market decline from past five years
What are the factors that resulted in the decline of shipment?
  • The demand of soft retail.
  • Short term failure of inventory reduction.
  • Reduction of sales, revenue, volume and market share for one product due to the introduction of a new brand. The process is also known as cannibalization.
  • Low demand of products.
Regional highlights as per the IDC report- The United States- Shipments of 16.4 million PCs in the session 2Q15. About a year ago, the market fall for the same quarter was minus 3.3 percent. While the most vendors saw a phase of decline, brands like Apple and Lenovo pushed the rate of decline to a better spot. Decline in the shipments of desktop, in comparison to the portable PCs shipments that witnessed a growth.In countries like Europe, Middle East, and Africa, the decline in demand and superior inventory levels restrained the sale. While the vendors were trying to clear the stock before the launch of Window 10, unfavorable exchange rates increased the price of the product and affected the demand for both business and consumer space.

Asia/Pacific – the onset of commercial notebook inventory, currency fluctuation, and anti-corruption campaigns affected the commercial expenditure of the region.

Japan- witness low growth due to the weak contribution of Yen in the market and end of Window XP support.

The Highlights from the Vendors side-
  • Lenovo- Top position in the shipment with 13.4 million unit sale. Growth of 1 percent than the previous quarter- though went down to minus 7.5% from last year.
  • HP- reserves the second spot in the vendor list despite of the minus 10.4% decline from a year ago. Sinking business demands and repulsive control in managing the inventory of notebooks contributed to the downfall.
  • Dell secured the number three spot- shipping about 9.5 million units and facing a year-on-year decline of minus 8.7%. The 2Q14 results were strong enough- even the performance in Asia/Pacific was stronger, but they have somewhere affected the growth.
  • Apple continues to outshine the global growth of 16.1 percent rise. The onset of new products like 12-inch MacBook has contributed to this growth. Most of the vendors have avoided the competition faced by other players- they have been benefited with the delay of launch in Window 10.
  • Like Apple, Acer witnessed the growth in Chromebooks with many models (particularly in EMEA area). At the same time, the vendors have also faced the struggle due to the larger pullback in the market (especially in EMEA). By the end of 2Q14, the volume figures were 4.33 million- a significant delay in comparison to the prior quarters and volume figures.
  • ASUS- reserves the spot of fifth best position (along with Acer).
What the PC market includes? The data presented by IDC reflected figures pertaining to the shipment of Desktops, Portables, Ultraslim Notebooks, Chromebooks, and Workstations. The list doesn’t include handhelds; x86 servers and Tablets (that means no iPad or tablet available on Android and iOS platform). IDC gathers data from about 80 countries in the form of vendors listing, form factor, brand, processor, brand, the channel of selling, user listing and speed.

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Mobilemag.com Insight:
Happy to hear that Apple performed exceptionally  well in the quarter, rising with a global 7.9 percent market share! The increase was about 5.9 percent higher than the sales figures for the year before. Out of all the major OEM brands, Apple has managed to grow the units of sale.

Well, the data clearly reflects the fact- Window 10 is much awaited, and all the eyes are on the launch now! By the end of this month, Window 10 will start with the sale of the new operating system. It seems that the world is really waiting for the release of Window 10- holding their respective desire to buy new PC products until the release of the latest operating system. May be the next quarter will be all about the bump in sales (let’s keep our fingers crossed).