PC Market Declines, But Less Than Recent Quarters
July 11 2016 - 6:10PM
Dow Jones News
Personal computer shipments fell again in the second quarter,
two prominent research firms found, but the declines were less
severe than in other recent periods.
International Data Corp. said shipments fell 4.5% for the period
ended in June, better than the 7.4% decline it had projected.
Gartner Inc. estimated shipments were 5.2% lower than the
year-earlier quarter.
The PC industry has been struggling with declining demand for
several years because of issues that include a shift in consumer
spending to smartphones. The second quarter was the seventh
consecutive quarter that shipments fell. IDC estimated that
shipments in the first quarter had dropped 11.5%, while Gartner put
the decline at 9.6% for the period ended in March.
There were more positive signs in the second quarter. Both
firms, for example, said that shipments rose in the U.S.
market.
Gartner, which doesn't include the laptops called Chromebooks
that run operating software from Google Inc., put the rise in U.S.
shipments at 1.4%. IDC, which does include Chromebooks, cited
back-to-school demand for those portables as a key factor in its
estimate of 4.9% growth in the U.S. market.
The two research firms differed in their characterization of the
largest vendors' performance.
Gartner said Dell Inc.'s global shipments rose 3.1%, while HP
Inc. experienced a 1.8% decline. Mikako Kitagawa, a Gartner
analyst, said Dell's status as a private company has allowed it to
be more aggressive in competing in the PC business. HP, by
contrast, has to satisfy Wall Street analysts who aren't keen on
sales of low-margin PCs that sell in the highest volumes.
"Dell can do whatever they want to do," she said. "PCs are
really a cash cow for them."
IDC, by contrast, estimated that HP's global shipments rose
5.1%, compared with 4.2% for Dell.
Both firms estimated that shipments by Lenovo Group Ltd., the
No. 1 vendor, declined by slightly more than 2%.
Apple Inc., meanwhile, has suffered lately due to a lack of new
Mac models, Ms. Kitagawa said. Gartner put Apple's shipment decline
at 4.9% while IDC estimated that the company's shipments fell
8.3%.
Write to Don Clark at don.clark@wsj.com
(END) Dow Jones Newswires
July 11, 2016 17:55 ET (21:55 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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