Tag: pc shipments

Lenovo reports record shipments, market share

Lenovo has pulled it off again. Although most PC peddlers are in the red, the company reported record PC shipments, annual sales, global market share and annual pre-tax income. 

In its fiscal fourth quarter, ending 31 March, Lenovo reported sales of $34 billion, up 15 percent year-on-year, as well as a record full-year pre tax income of $801 million, up 38 percent over the previous year. Better yet, Lenovo’s market share shot up to 15.5 percent for the full year.

Quarterly revenue was up four percent year-on-year, at $7.8 billion, with a 63 percent increase in pre-tax profit. Over the past 12 months the company’s PC shipments grew 10.2 percent, compared to an overall industry decline of 8.1 percent during the same period. Lenovo beat the industry for the 16th quarter in a row, and as if that wasn’t enough, it is aggressively expanding into post-PC markets.

It now has a 5.9 percent share of the smart connected device market, ranking third worldwide.

Although Lenovo smartphones are something of an oddity in the West, China is gobbling them up. It has also stepped up its game in the tablet market, although it still has a long way to go before it matches its PC success. 

China becomes biggest PC market

China was the world’s biggest PC market in 2012 according to analyst house IHS.

The Chinese market gobbled up an estimated 69 million PCs, three million more than the US. 

Furthermore, China’s PC market is expected to show moderate growth this year, which can’t be said of western markets.

Chinese consumers are showing some interesting trends  – they still like desktop PCs, which accounted for about 50 percent of all PC shipments in China last year, while notebooks accounted for the other half. In the rest of the world desktop shipments lag behind notebook shipments by a wide margin. 

“The equal share of shipments for desktops and notebooks in China is unusual, since consumers in most regions today tend to prefer more agile mobile PCs, rather than the bulky, stationary desktops,” said Peter Lin, senior analyst for compute platforms at IHS.

Lin attributed the trend to strong desktop demand in rural China. Rural consumers simple tend to prefer desktops for one reason or another. However, as the Chinese market matures, IHS is expecting notebooks to overtake desktops next year, reports EEtimes.

PC Shipments decline in second quarter of 2012

Worldwide PC shipments declined in the second quarter of 2012 as a result of consumers waiting for the “next big thing” and an uncertain economy, two separate reports have found.

IDC and Gartner bared the bad news with both agreeing the market had declined by 0.1 percent compared to the same time last year. According to figures from Gartner, PC shipments totalled 87.5 million units meaning the PC market suffered through its seventh consecutive quarter of flat to single-digit growth.

IDC pointed out that the market was suffering as consumers remained cautious. Jay Chou, senior research analyst, said the Windows 8 launch date announcement plus a “broader communication” of new features in the OS were key steps that will “help to address uncertainty about new product availability and help consumers and channels plan their purchases”.

Mikako Kitagawa, principal analyst at Gartner, added that consumers were less interested in spending on PCs as there were other technology product and services, such as the latest smartphones and media tablets.

She added that Intel’s Ultrabook, which manufacturers are still heavily investing in, also has the opportunity to create competition in the PC market later on down the line.

Vendor wise, HP scraped in at top place taking a 15 percent market share in this space. However, it wasn’t all good news, with the company’s revenue declining by 12.3 percent from the previous quarter, the analysts said.

In its report Gartner claimed the fall had stemmed from internal issues from the company’s organisational changes. It said HP’s PC business was not yet been back to pre re-structuring level.

And HP should also watch its back, with both analyst houses pinpointing Lenovo as a key competitor to the top dog. The company, which came in at second place, narrowed the gap between itself and HP considerably. Gartner  said this was down to its aggressive pricing strategy as well as a string of acquisitions.

Also making a huge impact in this sector was Asus, which grew the most in the second quarter, increasing its shipments by 38.6 percent. IDC said this was because the vendor had most of its volume in EMEA and Asia/Pacific as well as expanding channels and gaining share in other regions.

Regionally, the US saw a total of 15.9 million  PC shipments in the second quarter of 2012, a 5.7 percent decline from the same period last year. The slowdown in the US market was largely attributed to weak consumer spending on PCs.

However it was brighter in the EMEA region with PC shipments here totalling 25.1 million units in the second quarter of 2012, a 1.9 percent increase from the same period last year.

Western Europe saw very weak demand across all countries but especially Southern Europe. Consumer willingness to spend on PCs was furthered hindered by the growing eurozone economic crisis, Gartner said.

It added that although retailers again took a risk adverse approach, distributors could well have greater levels of inventory. It said this would hinder future growth of markets as Windows 8 and more Ultramobile notebooks arrive in the second half of 2012.

The Asia/Pacific PC market grew two percent, as shipments reached 31.8 million units, while in Latin America, PC shipments totalled 9.3 million units, a decline of 1.7 percent from the second quarter of last year.

PC shipments in Western Europe decline

The Western European PC shipment market declined in the first quarter of this year, a report by Gartner has found.

The analyst company said that PC shipments in this region totalled 15.5 million units in the first quarter of this year, which was a 3.1 percent decline compared with the equivalent period in 2011.

Those affected the worst were Italy, Greece, Portugal and Spain. Gartner said the reason for the decline was as a result of consumers spending their cash on devices such as smartphones and media tablets over the traditional PC.

However, the professional PC market fared slightly better. Despite a decline of 2.5 percent in the first quarter of 2012, there was a better demand for replacement PCs as a result of increasing Windows 7 deployments.

Back to doom and gloom, the consumer PC market declined 3.8 percent year-on-year, while mobile PC shipments decreased 5.1 percent. There was a small glimmer of hope with desk-based PC shipments, driven by slightly better demand in the professional PC market, which grew by 0.3 percent.

In terms of vendors, HP remained top dog as a result of strong sales of professional PCs. It wasn’t good news for Acer, which, despite remaining in second place, still seemed to be in transition and suffering from major management changes at a country level.

Asus bounded in at number three thanks to its variety of mobile PCs, while  Lenovo was the fastest-growing vendor with growth of 34.6 percent.

Gartner said Lenovo’s decision to expand its consumer and business presence with an aggressive pricing strategy was paying off.

It also claimed that this quarter had a ‘wait and see’ feel to it, as many retailers were awaiting Intel’s Ivy Bridge-based Ultrabooks and the arrival of Windows 8-based PCs.

Over in the UK, there were some positive findings with the PC market totalling 3 million units in the first quarter of 2012. This was an increase of 2.4 percent compared with the equivalent period in 2011. The desk-based segment showed the greatest increase, with a rise of 7.2 percent, which Gartner put down to a result of strong sales of the all-in-one form factor.

HP increased its lead and remained the top dog vendor in the UK, thanks to well-priced products. However, Dell’s performance was described by Gartner as “weak”, and it continued to lose share. Lenovo was the major winner, with 59.5 percent growth. EPC shipments in France were at 2.7 million units in the first quarter of 2012, a decline of 3.9 percent compared to the first quarter of 2011.

Over in France the PC market in France remained weak, but it showed signs of improvement in the professional PC segment, which grew 0.8 percent in the first quarter 2012. Gartner said this was as a result of a number of deals in the education and public sector and increasing demand for Windows 7-based PCs, which accelerated the replacement cycle.

HP remained once again took top spot in France, but it was only Toshiba which really showed growth, moving into the fifth position thanks to its availability of its mainstream mobile PCs.

Over in Germany the figures were better. PC shipments totalled 3.3 million units in the first quarter of 2012, an increase of 7.1 percent compared with the equivalent period in 2011. Shipments in the professional PC market also grew by nine percent and the consumer PC market increased 5.2 percent year-on-year.

Overall, the mobile PC segment grew 8.7 percent and the desk-based PC segment grew 4.7 percent. It wasn’t good news for HP here, which lost its number one position to Acer.

Lenovo hits big figures for the year

It’s gold stars all round for Lenovo, which will be getting big pats on the back from its investors.

The PC company today released its fourth quarter financial results, ending in March 2011, which show that it made full-year sales of $21.6 billion.

It’s also boasting that it has hit a full-year double digit record market share of 10.2 percent as well as claiming that for the eighth quarter in a row it “outgrew the worldwide PC market as a whole.”

It also said that whilst the overall industry saw a decline of 1.1 percent in PC shipments, during this period its own numbers rose by 16 percent, while consolidated sales the same time grew 13 percent year-over-year to $4.88 billion.

When it came to operating profits the company claims that it raked in a 50 percent increase to $69 million, while consolidated sales increased 30 percent to $21.6 billion.

According to the company its success was down to a range of its different business arms  including its new Mobile Internet and Digital Home business, which has a big hand in making tablets and smartphones, as well as a cloud computing arm.  

It’s also managed to get its foot into international doors. Its partnership with NEC was attributed to helping it get a leg into the Japanese market, while selling its first tablet exclusively in China gave it an edge here.

In China, the company gained $2.2 billion in consolidated sales, while PC shipments here grew 15.8 percent year-over year.
 
In emerging markets shipments grew 88 percent in Russia, 58 percent in India and 15 percent up in Brazil.  
 

Professional PC shipments laugh in the face of tablets

Worldwide PC shipments in Q4 2010 grew 3.1 percent to 93.5 million units, while year-end shipments increased by 13.8 percent.

However, Gartner says that these figures were below earlier forecasts of  4.8 percent growth for the quarter.

The findings match those by research firm Context, which this week released a report showing unit sales of PCs in Western Europe through all major distribution channels rose by 12.2 percent overall last year, despite a less than impressive fourth quarter with sales advancing only 3.2 percent as compared with Q4 2009.

It said this was down to a challenging economic environment.

However, Gartner puts low sales down to “the intensifying competition in consumer spending”.

It said that media tablets such as the iPad all competed against PCs, causing sales figures to slump lower than expected.

However, there is a silver lining with the PC market seeing a steady growth in the professional market driven by replacement purchases. For all 2010, the results also indicated that the PC market had recovered from the recession, as it returned to double-digit growth, compared to low single-digit growth in 2009.

Gartner warns that the PC market isn’t quite yet out of the woods. It will face challenges with increased, intensified competition among consumer spending.

HP maintained the number one position in worldwide PC shipments in the fourth quarter of 2010, but its shipment growth was below the worldwide average. It was predicted that HP’s professional business had solid growth, but Gartner said this in the end was offset by a weak consumer PC business in the US.

That said HP did manage to claw back some success in the EMEA professional and consumer markets, while still facing challenges in the Asia/Pacific region.

Acer also faced challenges in the fourth quarter of 2010 due to a slowdown in the overall consumer mobile PC market. The company was impacted by a weakening mini-notebook segment and due to a lower presence in the professional PC market, Acer could not benefit from the professional PC refresh demand.

Dell on the other hand had some success with the professional PC refresh market and its shipment growth was better than regional averages across most regions, while
Lenovo marked the strongest year-on-year growth among the top five vendors thanks to the  replacement purchases in the professional PC market, as well as its ongoing efforts of getting into the consumer market.

Global Q3 PC shipments match analyst forecasts

Global PC shipments continued to grow in the third quarter this year, rising seven percent over the last quarter and up 10.3 percent compared to last year.

Despite wide reports of doom and gloom, Q3 managed to keep its head above water, says analyst group iSuppli, to reach 88.1 million units globally. The second quarter of 2010 saw shipments of 82.6 million and it’s a rosey figure compared to last year which had overall shipments of 79.9 million.

This was managed despite warnings from the far East, says iSuppli, and declining components, as well as “mounting concerns over consumer spending”.

All three “major types of PCs” – that is, desktops, notebooks and entry-level servers saw growth on sequential and year-on-year basis for the quarter. Desktop PCs were strongest, with shipments up 11 percent sequentially. iSuppli believes this is thanks to healthy demand in the corporate sector.

While the manufacturers worry about notebook shipments, they still saw growth, four percent sequentially. Shipments were up 15 percent a year earlier, but compared to 42 and 41 percent increases in the first and second quarters respectively, slowed growth highlights waivering consumer confidence. 

* Meanwhile sources at DigiTimes predict that Intel’s Sandy Bridge will make up a massive 20 percent of desktop CPU shipments in the first quarter of 2011 alone. That means a wide push as soon as it’s introduced at the Consume Electronics Show in Las Vegas, January. It’s quite possible that with Sandy Bridge in town spending confidence could receive a boost. 

PC shipments augur well for AMD results

If AMD doesn’t turn in stonking results for its quarter tonight, then there really is something seriously wrong with the state of things to come in Sunnyvale.

Intel, earlier on this week, turned in fab results and a Gartner report reckons that worldwide shipments of PCs grew 27 percent in the first calendar quarter of this year.

Shipments, which in Gartner’s eyes are closely tied to Microsoft Windows shipments, amounted to 84.3 million units in the calendar quarter, surpassing its earlier forecast because it’s a 27.4 percent increase and the market research firm had only originally forecast a 22 percent jump.

Gartner said that the strong growth was led by the EMEA region, which reported double digit growth rates. The Americas were less than Gartner had expected.

The good news for the X86 manufacturers is that Gartner believes that the commercial PC market is picking up. Analyst Mikako Kitagawa said that growth is driven by replacements in the “mature markets”. She said that enterprise PC replacement demand was being driven by Microsoft Windows 7 and that’s going to pick up in the second half of this year and the first quarter of next year.

HP is still the pole player in the X86 market, but its Asian rivals are gaining market share, she said. At press time, AMD’s share price stands at $10.14, up from its 52 week low of $3.17. INTC stands at $24.26, up from its year of $14.96. Gartner is listed too, but we don’t track market research companies, mostly.

Wall Street is forecasting that AMD will make a smaller loss this time round.

Dell continues to bleed market share

Figures from the Gartner Group for PC shipments during the fourth quarter of last year underline continuing weakness for Dell.

While HP showed 19.8 percent market growth in the fourth quarter, and Taiwanese PC company Acer grew by 13.5 percent, Dell only grew by 11.5 percent, compared to a figure of 13.3 percent in the same quarter in 2008.

This is in the face of the strongest growth rate in seven years in the PC market – although Gartner cautions that the fourth quarter of 2008 was very weak because of the economic crunch.

The growth in the PC market was down to low priced consumer mobile PCs – notebooks and netbooks. Dell’s strength is in the commercial and corporate sector and it declined to join a price war in the market, in a bid to preserve its profits.

The launch of Windows 7 did not create additional PC demand, but, said Mikako Kitagawa, principal analyst at Gartner, “was a good market tool during holiday sales”.

As far as territories go, the USA and Asia Pacific did best during the fourth quarter – Europe has been slower to recover. Nevertheless all regions showed positive shipment growth.

Ms Kitagawa said: “Aggressive promotion by PC vendors and channels stimulated consumer PC demand. However some vendors made damaging price cuts to increase market share.”

This table is courtesy of the Gartner Group.

Prelim worldwide PC vendor unit ships for Q4 2009 (thousands of units)
Company
Q4 09
Mkt Share
Q4 08
Mkt Share
Growth
HP
17,792.2
19.8%
14,239.9
19.3%
24.9%
Acer
12,188.2
13.5%
8,612.7
11.7%
41.5%
Dell
10,397.1
11.5%
9,839.3
13.3%
5.7%
Lenovo
7,836.5
8.7%
5,509.3
7.5%
42.2%
Toshiba
4,811.9
5.3%
3,668.1
5%
31.2%
Others
37,008.5
41.1%
31,855.4
43.2%
16.2%
Total
90,034.5
100%
73,724.7
100%
22.1%

HP became number one vendor in the US, beating Dell. Dell “struggled to retain its share in the consumer market. Dell had trouble keeping its share in that market and, said Ms Kitigawa, “could not win the severe price battle in the retail space”.

In the US, the top five companies were HP, Dell, Acer, Toshiba and Apple. Apple had a 7.5 percent share in the marketplace for the fourth quarter of 2009.