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PC Shipments Decline in Q1 2011

Gartner, Inc. announced that, according to its latest research, worldwide PC shipments totaled 84.3 million units in the first quarter of 2011, a 1.1% decline from the first quarter of 2010.

For more information visit: www.gartner.com


Unedited press release follows:

Gartner Says Worldwide PC Shipments in First Quarter of 2011 Suffer First Year-Over-Year Decline in Six Quarters

Hype for Media Tablets Slows Consumer PC Demand
STAMFORD, Conn., April 13, 2011 — Worldwide PC shipments totaled 84.3 million units in the first quarter of 2011, a 1.1 percent decline from the first quarter of 2010, according to preliminary results from Gartner, Inc. Although the first quarter is traditionally a slow one for PC sales, these shipment results indicate potential sluggishness, not just a normal seasonal slowdown. These figures are below Gartner’s earlier forecast for 3 percent growth in the first quarter of 2011.

“Weak demand for consumer PCs was the biggest inhibitor of growth,” said Mikako Kitagawa, principal analyst at Gartner. “Low prices for consumer PCs, which had long stimulated growth, no longer attracted buyers. Instead, consumers turned their attention to media tablets and other consumer electronics. With the launch of the iPad 2 in February, more consumers either switched to buying an alternative device, or simply held back from buying PCs. We’re investigating whether this trend is likely to have a long-term effect on the PC market.”

Steady growth in the professional PC sector, driven by the replacement cycle, was a bright spot for the global PC market. Without the professional segment growth, the PC market could have experienced one of the worst declines in its recent history. Replacement sales will generally continue into late 2011 or the start of 2012, with some variations between different regions and market segments.

HP performed below the worldwide average, but maintained the No. 1 position, accounting for 17.6 percent of worldwide PC shipments in the first quarter of 2011 (see Table 1). HP was impacted by weak consumer PC demand, as well as growing issues in Asia/Pacific. Acer continued to face challenges as the mini-notebook market was impacted by media tablets, and its shipments declined 12.2 percent.

Table1
Preliminary Worldwide PC Vendor Unit Shipment Estimates for 1Q11 (Units)

Company 1Q11 Shipments 1Q11 Market Share (%) 1Q10 Shipments 1Q11 Market Share (%) 1Q11-1Q10 Growth (%)
HP 14,797,299 17.6 15,312,468 18.0 -3.4
Acer Group 10,893,793 12.9 12,412,859 14.6 -12.2
Dell 9,984,370 11.9 10,210,766 12.0 -2.2
Lenovo 8,137,904 9.7 6,976,683 8.2 16.6
Toshiba 4,821,600 5.7 4,580,746 5.4 5.3
Others 35,615,953 42.3 35,686,995 41.9 -0.2
Total 84,250,918 100.0 85,180,518 100.0 -1.1

Note: Data includes desk-based PCs, mobile PCs, including mini-notebooks but not media tablet such as the iPad.
Source: Gartner (April 2011)

In the first quarter of 2011, Dell experienced a shipment decline year-over-year for the first time in six quarters. Dell underperformed in the U.S., Europe, the Middle East and Africa (EMEA) and Latin America, but it achieved strong growth in Asia/Pacific. Lenovo experienced the strongest growth among the top five vendors (16.6 percent) as it continued to price its products very competitively in both the consumer and professional sectors. It achieved strong growth across all regions.

In the U.S., PC shipments totaled 16.1 million units in the first quarter of 2011, a 6.1 percent decline from the first quarter of 2010. “As with the worldwide market, the U.S. PC market was affected by the hype surrounding media tablets. This was the third consecutive quarter of mobile PC shipment declines in the U.S.,” Ms. Kitagawa said. “The U.S. professional PC market showed steady growth across all sectors. However, the public sector showed more than the normal seasonal weakness due to budgetary issues.”

HP continued to lead the U.S. market with its market share increasing to 26.2 percent, despite a shipment decline of 3.5 percent in the first quarter (see Table 2). While HP struggled in the consumer PC market, it also encountered tough price competition in the professional segment, especially in the midmarket.

Dell faced tough competition in both the U.S. consumer and professional markets. The challenge for Dell arose in the midmarket, where more vendors tried to squeeze in to benefit from professional PC refresh cycles. Apple maintained strong shipment growth, even after the holiday season. The MacBook Pro refresh at the end of February accelerated already strong Mac growth.

Table 2
Preliminary United States PC Vendor Unit Shipment Estimates for 1Q11 (Units)

Company 1Q11 Shipments 1Q11 Market Share (%) 1Q10 Shipments 1Q10 Market Share (%) 1Q11-1Q10 Growth (%)
HP 4,214,271 26.2 4,366,543 25.5 -3.5
Dell 3,587,715 22.3 4,080,473 23.8 -12.1
Acer Group 1,828,477 11.3 2,435,084 14.2 -24.9
Toshiba 1,669,700 10.4 1,506,074 8.8 10.9
Apple 1,491,125 9.3 1,254,100 7.3 18.9
Others 3,321,076 20.6 3,514,063 20.5 -5.5
Total 16,112,364 100.0 17,156,338 100.0 -6.1

Note: Data includes desk-based PCs, mobile PCs, including mini-notebooks, but not media tablet such as the iPad.
Source: Gartner (April 2010)

PC shipments in EMEA totaled 26.1 million units in the first quarter of 2011, a 2.8 percent decline from the first quarter of 2010 (see Table 3).

Table 3
Preliminary EMEA PC Vendor Unit Shipment Estimates for 1Q11 (Thousands of Units)

Company 1Q11 Shipments 1Q11 Market Share (%) 1Q10 Shipments 1Q10 Market Share (%) 1Q11-1Q10 Growth (%)
Hewlett-Packard 5,019 19.2 5,532 20.6 -9.3
Acer Group 4,939 18.9 5,557 20.7 -11.1
Dell 2,318 8.9 2,500 9.3 -7.3
ASUS 1,950 7.5 2,186 8.1 -10.8
Lenovo 1,325 5.1 1,236 4.6 7.2
Others 10,567 40.5 9,856 36.7 7.2
Total 26,119 100.0 26,867 100.0 -2.8

Note: Data includes desk-based PCs, mobile PCs, including mini-notebooks but not media tablet such as the iPad.
Source: Gartner (April 2011)

“The PC market in EMEA had not exhibited decline since the third quarter of 2009 when the market declined 8.9 per cent,” said Ranjit Atwal, research director at Gartner. “The excess inventory accumulated at the end of the fourth quarter of 2010 was reduced slowly, especially as some of the delayed Sandy Bridge products entered the market in March. The seasonal trend was also weaker than expected, indicating that the downward trend seen at the end of 2010 continued into the first quarter of 2011.”

Western Europe remained the main area of weakness in EMEA, as consumers continued to delay spending disposable income on PCs or other products like media tablets, especially after the launch of the iPad 2. This is extending current PC life cycles.

In Asia/Pacific, PC shipments surpassed 28.2 million units in the first quarter of 2011, a 4.1 percent increase from the first quarter of 2010. PC purchases by consumers remained weak, especially in China and Taiwan. PCs were not high on consumers’ shopping lists during the Chinese New Year holiday. In India, consumers were distracted by the Cricket World Cup. They also preferred to upgrade or purchase new TVs or other home electronics.

The PC market in Lain America grew 5.4 percent in the first quarter of 2011, as shipments totaled 8.1 million units. Brazil accounted for over 40 percent of Latin America’s PC shipments. As PC vendors’ interest in Brazil grows, so does competition. Local PC vendors are particularly vulnerable, as their strength lies in the production of desk-based PCs. Multinational vendors are making inroads by selling less-expensive mobile PCs.

PC shipments in Japan declined 13.1 percent in the first quarter of 2011, with shipments reaching 4 million units. The earthquake and tsunami on March 11 reduced PC shipments, and Gartner analysts are still investigating the scale of the impact on the market in first quarter. The impact of the disaster was most evident in the professional PC market, where the second half of March is the year’s busiest procurement period.

These results are preliminary. Final statistics will be available soon to clients of Gartner’s PC Quarterly Statistics Worldwide by Region program. This program offers a comprehensive and timely picture of the worldwide PC market, allowing product planning, distribution, marketing and sales organizations to keep abreast of key issues and their future implications around the globe. Additional research can be found on Gartner’s Computing Hardware section on Gartner’s website at http://www.gartner.com/it/products/research/asset_129157_2395.jsp.

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