PC Leaders Continue Growth And Share Gains As Market Remains Slow, According to IDC

FRAMINGHAM, Mass.--(BUSINESS WIRE)--Worldwide PC shipments totaled 80.8 million units in the fourth quarter of 2014 (4Q14), a year-on-year decline of -2.4%, according to the International Data Corporation (IDC) Worldwide Quarterly PC Tracker. Total shipments were slightly above expectations of -4.8% growth, but the market still contracted both year on year and in comparison to the third quarter. Although the holiday quarter saw shipment volume inch above 80 million for the first time in 2014, the final quarter nonetheless marked the end of yet another difficult year – the third consecutive year with overall volumes declining. On an annual basis, 2014 shipments totaled 308.6 million units, down -2.1% from the prior year.

Although the U.S. and Europe remained stronger than other markets, growth in these mature regions slowed from earlier in the year. Asia/Pacific (excluding Japan)(APeJ) continued to strengthen, seeing only a very slight increase in volume as a number of public projects and improving consumer demand helped stabilize the market. Similarly, commercial demand, which boosted growth earlier in the year, has slowed while consumer demand is gradually coming back. Nevertheless, the market progress has been fueled by low-priced systems, including growth of Chromebooks and promotion of Windows 8 + Bing. Constraints on Bing promotions, such as limits on larger-sized devices, could remove a key market driver while some fourth quarter production was attributed to getting ahead of holiday-related production constraints in Asia in the first quarter, effectively shifting volume from early 2015 into the end of 2014.

"The strength from market leaders, as well as improvement in Asia/Pacific and the consumer market more generally, are positive signs for the PC market," said Loren Loverde, IDC Vice President, Worldwide PC Tracker. "Growth of Chrome, Bing, all-in-ones, ultraslim, convertibles, and touch systems similarly make PCs more compelling and competitive. Nevertheless, some of the gains are relatively small, and weakening drivers like Bing promotions and end of XP support transitions, cast a shadow of doubt on the strength of the market going into 2015."

"The U.S. PC market continued to grow in the fourth quarter, outperforming the global market for the tenth consecutive quarter. The past year was supported by Windows XP to 7 migrations in the commercial segment while consumer volume continued to decline," said Rajani Singh, Senior Research Analyst, Personal Computing. "Moving forward, the U.S. PC market should see flat to slightly positive growth. The U.S. consumer PC market will finally move to positive growth in 2015, strengthened by the slowdown in the tablet market, vendor and OEM efforts to rejuvenate the PC market, the launch of Window 10, and replacement of older PCs."

Regional Highlights

United States – Market leader HP had a remarkable quarter with year on year growth jumping to more than 26%. Other key vendors also had strong performances. As a result, the U.S. PC market concentration has increased to 83% of shipments coming from the top 5 vendors. Portable PC growth remains strong with double-digit growth from a year ago, while desktop shipments declined by more than -10%.

Europe, Middle East, and Africa (EMEA) – PC shipments in EMEA posted a slight increase in the fourth quarter, fuelled mainly by strong consumer demand during the holiday season. Vendors continued to stock up ahead of Christmas and January promotional sales, and before the February change to Bing promotions, which will exclude 15 inch notebooks. This translated into stronger than expected shipments of portable PCs, while desktop PC sell-in remained softer, particularly in the commercial space. Political and economic factors, especially unfavourable exchange rates, also negatively impacted numerous countries across the region.

Japan – The market continued to slump following a surge of XP replacements a year ago. Vendors took the time to clear excess inventory in the channel, leading to a lean quarter. Volume fell below 3 million units in the quarter, a drop of -35% year on year and its lowest level since the fourth quarter of 2006.

Asia/Pacific (excluding Japan) – APeJ continued to stabilize with growth rising to positive territory following several years of significant declines. HP had a strong recovery from recent quarters, while Dell continued to gain share. Slowing growth in tablets and smartphones as well as promotions of lower-priced Windows 8 + Bing systems helped relieve some pressure on the PC market.

Vendor Highlights

Lenovo continued to push hard in EMEA, expanding channels and capturing consumer holiday demand. The company also outpaced the market in the U.S. – though by a smaller margin – and was closer to market growth in other regions. Shipments reached a record 16 million units in 4Q14 with year-on-year growth of 4.9%, and annual shipments up over 10% from last year.

HP also saw a tremendous quarter with 15.9 million units and year on year growth surpassing 15%. A particularly strong quarter in the U.S. was a key driver, along with some volume for public projects in Asia/Pacific and Africa.

Dell shipped over 10.8 million units growing 8.5% on the year, much of it based on a strong performance in notebooks in the U.S. and APeJ. Rising growth in APeJ also helped offset slowing growth in the U.S. and Europe.

Acer grew over 3%, in part due to low volume a year ago but also from the success of its Chromebooks and entry-level notebooks. Acer's recovery in the U.S. and Europe slowed, in part due to higher year ago numbers.

Apple kept the number 5 position on a worldwide basis, maintaining its lead over ASUS. The company's steady growth, along with recent price cuts and improved demand in mature markets, has helped it to consistently outgrow the market.

Top 5 Vendors, Worldwide PC Shipments, Fourth Quarter 2014 (Preliminary)
(Shipments are in thousands of units)

Vendor	4Q14 Shipments	4Q14 Market Share	4Q13 Shipments	4Q13 Market Share	4Q14/4Q13 Growth
1. Lenovo	16,049	19.9%	15,294	18.5%	4.9%
2. HP	15,880	19.7%	13,796	16.7%	15.1%
3. Dell	10,879	13.5%	10,026	12.1%	8.5%
4. Acer Group	6,220	7.7%	6,026	7.3%	3.2%
5. Apple	5,750	7.1%	4,838	5.8%	18.9%
Others	25,994	32.2%	32,798	39.6%	-20.7%
Total Market	80,772	100.0%	82,778	100.0%	-2.4%

Source: IDC Worldwide Quarterly PC Tracker, January 12, 2015

Table notes follow the last table

In addition to the table above, an interactive graphic showing worldwide PC market share for the top 5 vendors over the previous five quarters is available here. The chart is intended for public use in online news articles and social media. Instructions on how to embed this graphic can be found by viewing this press release on IDC.com.

Top 5 Vendors, United States PC Shipments, Fourth Quarter 2014 (Preliminary)
(Shipments are in thousands of units)

Vendor	4Q14 Shipments	4Q14 Market Share	4Q13 Shipments	4Q13 Market Share	4Q14/4Q13 Growth
1. HP	5,314	30.1%	4,209	24.9%	26.2%
2. Dell	4,210	23.8%	3,701	21.9%	13.7%
3. Apple	2,245	12.7%	1,901	11.3%	18.1%
4. Lenovo	1,798	10.2%	1,667	9.9%	7.9%
5. Toshiba	1,141	6.5%	1,400	8.3%	-18.5%
Others	2,959	16.8%	4,002	23.7%	-26.0%
Total Market	17,667	100.0%	16,880	100.0%	4.7%

Source: IDC Worldwide Quarterly PC Tracker, January 12, 2015

Table notes follow the last table

Top 5 Vendors, Worldwide PC Shipments, 2014 (Preliminary)
(Units Shipments are in thousands)

Vendor	2014 Shipments	2014 Market Share	2013 Shipments	2013 Market Share	2014/2013 Growth
1. Lenovo	59,233	19.2%	53,804	17.1%	10.1%
2. HP	56,849	18.4%	52,188	16.6%	8.9%
3. Dell	41,665	13.5%	37,787	12.0%	10.3%
4. Acer Group	24,104	7.8%	24,508	7.8%	-1.6%
5. Apple	19,822	6.4%	17,132	5.4%	15.7%
Others	106,952	34.7%	129,702	41.2%	-17.5%
Total Market	308,625	100.0%	315,121	100.0%	-2.1%

Source: IDC Worldwide Quarterly PC Tracker, January 12, 2015

Table notes follow the last table

Top 5 Vendors, United States PC Shipments, 2014 (Preliminary)
(Units Shipments are in thousands)

Vendor	2014 Shipments	2014 Market Share	2013 Shipments	2013 Market Share	2014/2013 Growth
1. HP	18,332	27.6%	16,160	25.5%	13.4%
2. Dell	16,158	24.3%	14,055	22.1%	15.0%
3. Apple	8,085	12.2%	7,255	11.4%	11.4%
4. Lenovo	7,100	10.7%	6,195	9.8%	14.6%
5. Toshiba	4,299	6.5%	4,647	7.3%	-7.5%
Others	12,396	18.7%	15,151	23.9%	-18.2%
Total Market	66,370	100.0%	63,465	100.0%	4.6%

Source: IDC Worldwide Quarterly PC Tracker, January 12, 2015

Table Notes:

• Some IDC estimates prior to financial earnings reports.
• Shipments include shipments to distribution channels or end users. OEM sales are counted under the vendor/brand under which they are sold.
• PCs include Desktops, Portables, Ultraslim Notebooks, Chromebooks, and Workstations and do not include handhelds, x86 Servers and Tablets (i.e. iPad, or Tablets with detachable keyboards running either Windows or Android). Data for all vendors are reported for calendar periods.

IDC's Worldwide Quarterly PC Tracker gathers PC market data in over 80 countries by vendor, form factor, brand, processor brand and speed, sales channel and user segment. The research includes historical and forecast trend analysis as well as price band and installed base data.

For more information, or to subscribe to the research, please contact Kathy Nagamine at 650-350-6423 or [e-mail].

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About IDC
International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC.

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