Worldwide PC shipments sees growth of 1.1% in Q3 2019By Staff Writer 11 October 2019 | Categories: news
While IT research company Gartner has noted global device shipments will decline 3.7% in 2019, there's a little glimmer of hope, at least for the PC segment. Worldwide PC shipments showed a modest increase with 1.1% growth in the third quarter of 2019, according to preliminary results by the comnpany. Shipments totalled 68 million units in the third quarter of 2019, up from 67 million units in the third quarter of 2018.
“The Windows 10 refresh cycle continued to be the primary driver for growth across all regions, although the magnitude of the impact varied according to local market conditions and the stage of the refresh cycle,” said Mikako Kitagawa, senior principal research analyst at Gartner. “For example, in Japan, PC shipments grew 55% in the third quarter of 2019, driven by the Windows 10 refresh cycle and a pending sales tax change. This strong growth helped propel the total worldwide PC market to growth.”
“Neither the Intel CPU shortage nor the US-China trade war had a significant impact on PC shipments in the third quarter of 2019. The Intel CPU shortage has continued to ease, and US tariffs on China-built mobile PCs had a minimal impact on PC shipments as the date for the potential increase in tariffs was pushed out to December 2019,” said Kitagawa.
The Intel CPU shortage opened opportunities for alternative CPU vendors, namely AMD and Qualcomm, to reposition their processors in the PC market where Intel is dominant. Teaming up with Microsoft, Qualcomm has promoted the “always connected PC,” which is equipped with LTE capabilities, says Gartner. Though this segment has not taken off, most major PC vendors have released mobile PCs with cellular antennas built in. Microsoft is expected to release an LTE-capable mobile PC soon.
The top PC vendors have improved their profit margins from their PC business as a result of declining component prices, including DRAM and SSDs, over the past few quarters. Margin improvement strengthened the positions of the top three vendors — Lenovo, HP Inc. and Dell — which was already significant. The top three vendors, as well as Acer Group, also experienced year-over-year growth in shipments in the third quarter of 2019 (see Table 1).
The EMEA PC market grew 3% in the third quarter of 2019, with shipments totalling 19.4 million units. Business PC demand remained strong across most of Western Europe except for the UK, where PC demand is weak due to uncertainties around Brexit. Desktop PCs are still a popular form factor among many European businesses. Mobile PC shipments returned to growth after two quarters of decline.
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