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Gartner: APAC misses out on global PC market growth

22 Jan 2020

Worldwide PC shipments totalled 70.6 million units in the fourth quarter of 2019, a 2.3% increase from the fourth quarter of 2018, according to preliminary results by Gartner.

For the year, 2019 PC shipments surpassed 261 million units, showing 0.6% growth from 2018.

However, the Asia/Pacific PC market saw a 6.1% decline from the fourth quarter of 2018, totalling 22 million units in the fourth quarter of 2019. This marks the region’s fifth straight quarter of decline. 

The decline can be attributed to weaker PC spending in China, the country that represents around 60% of the total Asia/Pacific PC market, over political and trade concerns.

“The PC market experienced growth for the first time since 2011, driven by vibrant business demand for Windows 10 upgrades, particularly in the U.S., EMEA and Japan,” says Gartner senior principal analyst Mikako Kitagawa. 

“We expect this growth to continue through this year even after Windows 7 support comes to an end this month, as many businesses in emerging regions such as China, Eurasia and the emerging Asia/Pacific have not yet upgraded. Contrasted against the ongoing weakness in consumer PC demand, business PC demand has led to unit growth in five of the last seven quarters. 

“The ongoing Intel CPU shortage, which began mid-last year, became a major issue again on PC delivery to enterprise customers by the top three vendors. Without this shortage, shipments would have grown faster than the reported results.”

Despite these chip constraints, the top three vendors increased their combined market share through 2019 to the highest level since Gartner began tracking PC data. Lenovo, HP Inc. and Dell accounted for nearly 65% of PC shipments in the fourth quarter of 2019, up from just more than 61% in the fourth quarter of 2018 (see Table 1).

Table 1 – Preliminary Worldwide PC Vendor Unit Shipment Estimates for 4Q19 (Thousands of Units)

Company

4Q19 Shipments

4Q19 Market Share (%)

4Q18 Shipments

4Q18 Market Share (%)

4Q19-4Q18 Growth (%)

Lenovo

17,498

24.8

16,418

23.8

6.6

HP Inc.

16,129

22.8

15,301

22.2

5.4

Dell

12,114

17.2

10,805

15.7

12.1

Apple

5,262

7.5

5,425

7.9

-3.0

ASUS

4,062

5.8

4,100

5.9

-0.9

Acer 

3,994

5.7

3,861

5.6

 3.5

Others

11,553

16.4

13,104

19.0

-11.8

Total

70,612

100.0

69,014

100.0

2.3

Notes: Data includes desk-based PCs, notebook PCs and ultramobile premiums (such as Microsoft Surface), but not Chromebooks or iPads. All data is estimated based on a preliminary study. Final estimates will be subject to change. The statistics are based on shipments selling into channels. Numbers may not add up to totals shown due to rounding.

Source: Gartner (January 2020)

Lenovo maintained its No. 1 position in the worldwide PC market and widened its share over HP Inc. 

With the exception of the Asia/Pacific, Lenovo recorded year-over-year growth in all regions. 

In the U.S. alone, Lenovo’s desktop PC shipments rose more than 30% compared with a year ago.

HP Inc. experienced its third quarter in a row of year-over-year shipment growth, and kept its top position in the U.S., EMEA and Latin America. However, it is facing aggressive competition from Lenovo and Dell. 

Dell finished the fourth quarter of 2019 with a record number of shipments, exceeding 12 million units for the first time since Gartner started tracking PC shipments. 

Dell’s shipments grew year-over-year in all regions at a much higher rate compared with the regional average, due in large part to its particularly strong desktop PC growth.

Worldwide PC shipments totalled 261.2 million units in 2019, a 0.6% increase from 2018 (see Table 3). This was the first time in seven years that the global PC market experienced growth.

“Geographically, Japan’s annual growth led the overall market’s growth,” said Ms. Kitagawa. “As for vendor performance, the top three vendors grew faster than the market itself, gaining a combined market share of 63.1% in 2019 compared with 60.2% in 2018. Their focus on the business market and more favourable allocations within the current CPU constraints served them well throughout the year.

Table 3

Preliminary Worldwide PC Vendor Unit Shipment Estimates for 2019 (Thousands of Units)

Company

2019 Shipments

2019 Market Share (%)

2018 Shipments

2018 Market Share (%)

2019-2018 Growth (%)

Lenovo

62,968

24.1%

58,257

22.4

8.1%

HP Inc.

57,922

22.2%

56,252

21.7

3.0%

Dell

43,956

16.8%

41,790

16.1

5.2%

Apple

18,350

7.0%

18,522

7.1

-0.9%

Acer 

14,762

5.7%

15,729

6.1

-6.1%

ASUS

14,476

5.5%

15,425

5.9

-6.2%

Others

48,804

18.7%

53,788

20.7

0.6%

Total

261,237

100.0

259,763

100.0

0.6

Notes: Data includes desk-based PCs, notebook PCs and ultramobile premiums (such as Microsoft Surface), but not Chromebooks or iPads. All data is estimated based on a preliminary study. Final estimates will be subject to change. The statistics are based on shipments selling into channels. Numbers may not add up to totals shown due to rounding.

Source: Gartner (January 2020)

“Looking ahead, Gartner predicts a continuous decline in the consumer PC market over the next five years,” adds Kitagawa. 

“Product innovation is one of the key factors that will enable the overall PC market to maintain sustainable growth. We’ve already started to see this through the ‘foldable laptops’ introduced at CES this past week along with initiatives that make PCs as easy as smartphones by allowing users to always be connected and ensuring a worry-free battery life. Such innovations that change user behaviour and create new product segments are something to keep an eye on in 2020 and beyond.”

Note: These results are preliminary.