HPQ HP Inc

By Ezequiel Minaya 

World-wide shipments of personal computers fell in the first quarter of 2016 compared with a year earlier, the sixth consecutive quarter of declines and the first time since 2007 that shipments dropped below 65 million units, according to researcher firm Gartner Inc.

Gartner estimated world-wide PC shipments totaled 64.8 million units, down 9.6% from a year earlier. In the U.S., PC shipments totaled 13.1 million units, which represents a 6.6% decline from a year earlier and the lowest volume in three years.

The sector has faced headwinds in recent quarters which include an economic slowdown in China, the strong U.S. dollar and the growing popularity of smartphones.

Gartner said that all major regions have posted shipment declines in the latest quarter, with Latin American registering the steepest fall because of currency impacts. Brazil's economic woes and political instability also helped pressure personal computer shipments, which tumbled 32.4%. Sagging oil markets also weighed on the sector.

Chinese PC maker Lenovo Group Ltd. clung to the top spot in world-wide shipments in the first three months of 2016 despite a 7.2% decline. The company saw shipments fall in all regions except in North America, where Lenovo posted a 14.6% increase. In the past four quarters, the Chinese company had posted double-digit shipment growth in the U.S., Gartner said.

HP Inc., one of two companies spun off from the split of Hewlett-Packard, was second to Lenovo. The company posted a 9% decline in personal computer shipments to 11.4 million. Gartner said the company faces challenges in the market as it aimed to focus on higher end sales, which cost it shipments.

"There was no particular motivation for U.S. consumers to purchase PCs in the first quarter of 2016. There have been increased sales of two-in-one PCs, but not enough to offset the decline in desktop and traditional notebook sales," said Mikako Kitagawa, principal analyst at Gartner.

Write to Ezequiel Minaya at ezequiel.minaya@wsj.com

(END) Dow Jones Newswires

April 11, 2016 17:38 ET (21:38 GMT)

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