'Global PC shipments slump 10% to 64.8 mn'

Worldwide PC (personal computer) shipments plunged 9.6 per cent during January-March - sixth straight quarterly fall - to 64.8 million units on lower adoption in new households, especially in emerging markets, preliminary results by a Gartner study showed on Tuesday.

This is the first time since 2007 when shipments have fallen below 65 million units. The PC shipments had totalled 71.7 million in the first quarter of 2015.

Gartner said that all major regions showed year-on-year shipment declines, with Latin America showing the steepest drop, where PC shipments declined 32.4 per cent.

"The Latin American PC market was intensely hit by Brazil, where the problematic economy and political instability affected the market," Mikako Kitagawa, principal analyst at Gartner, said.

Kitagawa added the ongoing decline in US shipments showed the installed base was still shrinking, a factor that played across developed economies. Low oil prices drove economic contraction in Latin America and Russia, changing them from drivers of growth to market laggards.

"In these markets, smartphones are priority. In the business segment, Gartner analysts said the Windows 10 refresh is expected to start towards the end of 2016," Gartner said. Lenovo maintained the number one position in worldwide PC shipments in the reported period despite a 7.2 per cent decline in shipments. The company saw a decline in all regions except North America, where its PC units increased 14.6 per cent from the same period last year.

In the last four quarters, Lenovo has logged double-digit shipment growth in the US, while the overall market has declined.

HP Inc stood at second position followed by Dell at third and Asus at fourth place.

Gartner said HP was split into Hewlett-Packard Enterprise and HP Inc at the end of 2015, and HP Inc's first quarter indicates the challenges the company faces in the PC market.

"HP Inc has said it wants to stay away from low-profit segments, and the first quarter of 2016 results reflect its efforts to emphasise high-end sales, which cost it shipments," it added.

Dell's worldwide PC shipments declined 0.4 per cent in the first quarter, which was much better than the global industry average.

71.68 million
PC shipments in the first quarter of 2015

64.8 million
Worldwide PC shipments in the first quarter of 2016

Down 32.4%
Latin America showed steepest drop in shipments

Source: Preliminary results by a Gartner study