Lenovo Loses Ground to HP in Global PC Market

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Worldwide PC shipments for Q4 in 2017 have dipped by 71.6 million units, a 2 per cent decline from the prior year according to Gartner. In total, IDC says that the PC market showed 0.7 percent year-over-year growth in the fourth quarter, shipping a total of 70.6 million traditional (desktop, notebook, and workstation) PCs worldwide.

"The solid holiday consumer sales provided enough momentum for the PC market to stabilize a bit further", said Neha Mahajan, senior research analyst, Devices & Displays. It also claimed that organizations were shifting their attention back to notebooks, with the tablet market in a state of flux. Still, Gartner said there some signs for optimism, with Q4 shipment growth in Asia/Pacific, Japan and Latin and only a moderate decline in EMEA.

"PC buyers will look for quality and functionality rather than looking for the lowest price, which will increase PC average selling prices and improve profitability in the long run". "However, the growing popularity of other mobile form factors continued to have a dampening effect and led the overall US PC market to perform below expectations".

In the third quarter of 2017, HP Inc had 21.8 per cent market share while Lenovo registered 21.4 per cent in terms of PC shipments.

For the year, 2017 PC shipments surpassed 262.5 million units, a 2.8 percent decline from 2016. Japan also exceeded forecasts, although shipments were still in decline. There was only a moderate shipment decline in EMEA. Competition in the US market remained tough for the company as its USA share and growth both suffered.

Lenovo Loses Ground to HP in Global PC Market
Lenovo Loses Ground to HP in Global PC Market

'The fourth quarter results showed some potentially encouraging headway against the hard environment in retail and consumer PCs, ' says Jay Chou, research manager with IDC's Personal Computing Device Tracker division, of the results.

IDC noted that those figures marked 2017 as the most stable year the PC market has seen since 2011. The rise in ASPs is due to currency fluctuations, the need for vendors to offset rising component costs, and a product-mix shift toward higher-value items, such as gaming systems and high-performing notebooks. Unlike IDC, Gartner said Q4 2017 marked the thirteenth consecutive quarterly decline for the PC market. But because it failed to keep pace with the overall market's 0.7% growth, the company actually saw its share of the global market fall slightly to 22.2% from a previous 22.4%. 'Enticed by a growing array of products that promise all-day battery life, high portability, and address emerging use cases that require more compute power, pockets of the consumer base are taking a serious look at these revamped PCs.

For the full year, the top four vendors accounted for 64 percent of global PC shipments.

Lenovo was in second place, Dell in thitd, Apple in fourth and Asus and Acer tied for fifth place. IDC agrees with Gartner with the trajectory of all five companies, except for Lenovo, which it estimates was flat.

The company unveiled a number of new PCs ahead of a major consumer electronics show in Las Vegas this week, though it was far more muted in the smartphone arena.

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