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HOME OFFICE / DESKTOP PCS

PC 'Worst Decline In History'

By Oonagh Reidy | Friday | 10/01/2014

From bad to worse, but analysts say the market has "bottomed out"

PC demand falls by 7%, globally, as tablets continue to trample upon demand for traditional PC's like notebooks, laptops and desktops. 

PC shipments saw 82.6 million in Q4 compared to a year ago, say Gartner.

Q4 marked the seventh consecutive quarter of shipment decline. In 2013 PC shipments declined by 10% - the worst decline in PC history, 

"Strong growth in tablets continued to negatively impact PC growth in emerging markets" said Mikako Kitagawa, Gartner analyst, as mobile computing catches on. 

"As a result, the adoption of PCs in emerging markets will be slower as consumers skip PCs for tablets."

PC market in Asia Pacific also slipped 10 percent to 26.5 million devices. 

Chinese giant Lenovo solidified its victory over HP. The Chinese brand now accounts for almost one in five PCs shipped globally, or 18 percent V's HP's 16.4% share. 

Lenovo, who recently started selling its tablets in Australia for the first time, enjoyed growth in all regions, except Asia Pacific, where China continued to be a problematic country - despite it being its native country. 

Dell gained share and remains the No. 3 vendor. Acer has established a strong position in the Chromebook market, while Asus has built a solid reputation as a tablet vendor. 

PCs are still strategic products for both companies, but share gain is not the top priority for them.  

"Although PC shipments continued to decline in the worldwide market in the fourth quarter, we increasingly believe markets, such as the U.S, have bottomed out as the adjustment to the installed base slows," says Kitagawa.  

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