PC market sees sharpest decline since 2013 due to coronavirus pandemic

A recent study carried out by the research and advisory firm, Gartner, revealed that worldwide PC (personal computer) shipments totalled 51.6 million units in the first quarter of 2020, a 12.3 per cent decline from the same period of last year.

After three consecutive quarters of growth, the worldwide PC market experienced its sharpest decline since 2013 due to the Covid-19 outbreak, the research and advisory firm said.

Mikako Kitagawa, research director at Gartner, said that the single most significant influencing factor for PC shipment decline was the coronavirus (Covid-19) outbreak, which disrupted both the supply and demand of PCs.

Following the first lockdown in China in late January, the production of PCs fell in February leading to logistical challenges.

This quarter's vendor results underscore the growing economic uncertainties that are tightening spending on PCs, especially among small and mid-size businesses.

This uncertainty, coupled with the end of the Windows 10 upgrade peak, is causing enterprises to shift their IT budgets away from PCs and toward strategic business continuity planning , she was quoted as saying in a Gartner statement.

Despite the impact of Covid-19, the market share of top three vendors remained unchanged from the previous quarter.

They accounted for 65.6 per cent of PC shipments in the first quarter of 2020, up from just over 60 per cent in the first quarter of 2019.

Although Lenovo maintained its number one position in the worldwide PC market, its shipments declined 3.2 per cent in the first quarter of 2020 and 22.6 per cent year over year in Asia Pacific.

HP Inc.had a challenging first quarter, with a 12.1 per cent decline in PC shipments after three consecutive quarters of shipment growth.

HP recorded double digit shipment declines in all key regions, taking the hardest hit in desk-based PCs in Asia Pacific and Japan.

Dell was the only top vendor that showed year over year shipment growth (rising 2.2 per cent) despite the impact from COVID-19.

Dell's shipments grew in all regions in the first quarter of 2020, except in Asia Pacific.

Growth was particularly strong in the Americas where Dell experienced relatively stable business PC demand until March.

The first quarter of 2020 was the company s ninth consecutive quarter of shipment growth.

Asia Pacific showed the worst year over year decline of 27.1 per cent since Gartner started tracking the PC market.

With Covid-19 originating in China, the country was the largest contributor to this decline as all businesses, government and consumer activities came to a halt in February.

Overall PC shipments in China dropped by over 30 per cent compared to a year ago.

Desk-based PCs, the primary commercial PC type for the government and education organisations, experienced the biggest drop of nearly 40 per cent.

Mobile PCs declined less (20 per cent) as notebook demands were driven by remote employees and e-learning students, the statement added.