Lenovo nudges HP off global PC perch

IDCLenovo became the number one PC vendor in Q2 as HP slid to second with Dell coming in third.

According to IDC‘s Worldwide Quarterly PC Tracker, Lenovo continued its streak of gains following channel expansion and solid product development. In Q2, it made impressive gains outside of Asia Pacific except Japan (APeJ). However, the headwinds in China continued to affect its home turf significantly. Lenovo ended the quarter with a double-digit decline in APeJ. Overall growth has slowed from prior quarters, and slipped into negative territory this quarter, but still outpaced the market and top competitors.

HP slipped to second place, but growth improved from recent quarters. It was boosted by shipments to India as part of large education projects. Despite ongoing uncertainty surrounding its restructuring, Dell performed above market with a decline of 4.5 percent. As with HP, this was a significant improvement from the past year that was aided by improving growth in the US. It managed to perform above market in all key regions except APeJ.

Worldwide PC shipments totaled 75.6 million units in Q2, down 11.4 percent compared to the same quarter in 2012 but slightly better than expected. Total shipments were effectively right on forecasts of 75.4 million and growth of 11.7 percent, although Europe, Middle East, and Africa (EMEA) and APeJ were a few points below expectations with the difference made up in the US.

The numbers reflect a market that is still struggling with the transition to touch-based systems running Windows 8 as well as justifying ultrabook prices in the face of economic pressures and competition from tablets and other devices.

A silver lining is that a number of vendors and regions seemed to be focused on inventory reduction during Q2, which could reflect planned launches of new models as well as lower inventory going into the second half of the year. However, it also reflects some caution among vendors and the channels in the face of remaining challenges for PCs and more than a year of declining shipments.

“With second quarter growth so close to forecast, we are still looking for some improvement in growth during the second half of the year,” said Jay Chou, Senior Analyst, IDC Worldwide PC Tracker. “Slower growth in Europe and China reflect the risks, while the improved U.S. outlook reflects potential improvement. Still, the weakness in emerging markets is a threat to a core long-term growth area. In addition, while efforts by the PC ecosystem to bring down price points and embrace touch computing should make PCs more attractive, a lot still needs to be done in launching attractive products and addressing competition from devices like tablets.”

Although countries outside of China were fairly in line with forecasts, with India maintaining an encouraging trajectory, overall PC shipments in the region fell slightly below forecast due to China. Weak sell-in to China during April and May constrained shipments. Although June shipments in China improved, expectations for the third quarter are being lowered to reflect remaining inventory as well as economic pressures.

 

Top 5 Vendors, Worldwide PC Shipments, Q2 (Preliminary) (Unit shipments are in thousands) 

Vendor

2Q13 Shipments

2Q13 Market Share

2Q12 Shipments

2Q12 Market Share

2Q13/2Q12 Growth

1. Lenovo

12,619

16.7%

12,802

15.0%

-1.4%

2. HP

12,378

16.4%

13,414

15.7%

-7.7%

3. Dell

9,230

12.2%

9,633

11.3%

-4.2%

4. Acer Group

6,226

8.2%

9,241

10.8%

-32.6%

5. ASUS

4,590

6.1%

5,820

6.8%

-21.1%

    Others 30,589 40.4% 34,464 40.4% -11.2%
Total

75,632

100.0%

85,374

100.0%

-11.4%

Source: IDC Worldwide Quarterly PC Tracker, July 10, 2013

 

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