PC shipments decline worldwide for sixth consecutive quarter

This is the first time since 2007 that shipment volume fell below 65 million units, says a study by Gartner

Worldwide personal computer (PC) shipments totaled 64.8 million units in the first quarter of 2016, a 9.6% decline from the first quarter of 2015, according to preliminary results by Gartner.

This is the sixth consecutive quarter of PC shipment decline, and the first time since 2007 that shipment volume fell below 65 million units.

"The deterioration of local currencies against the US dollar continued to play a major role in PC shipment declines. Our early results also show there was an inventory buildup from holiday sales in the fourth quarter of 2015," said Mikako Kitagawa, principal analyst at Gartner in a press statement.

"All major regions showed year-over-year shipment declines, with Latin America showing the steepest drop, where PC shipments declined 32.4%. The Latin American PC market was intensely impacted by Brazil, where the problematic economy and political instability adversely affected the market," Kitagawa said. "The ongoing decline in US PC shipments showed that the installed base is 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."

PCs are not being adopted in new households as they were in the past, especially in emerging markets. In these markets, smartphones are the priority. In the business segment, Gartner analysts said the Windows 10 refresh is expected to start toward the end of 2016.

Lenovo maintained the No 1 position in worldwide PC shipments in the first quarter of 2016 despite a 7.2% decline in shipments. Lenovo experienced a shipment decline in all regions except North America, where the company's PC units increased 14.6% from the same period last year. In the last four quarters, Lenovo has showed double-digit shipment growth in the US, while the overall market has declined.

Asia/Pacific PC shipments reached 23.3 million units in the first quarter of 2016, a 5.1% decline from the first quarter of 2015. The ongoing fragile Chinese economy and weak global demand continued to dampen consumer sentiment in the region. With high PC penetration in the major cities, it was a challenge to invoke PC replacements on the appeal of new technology. The PC life cycle is lengthening as many consumers are waiting until their PC breaks down before purchasing a new one.

PC shipments in Europe, the Middle East and Africa (EMEA) totaled 19.5 million units in the first quarter of 2016, a decline of 10% year over year. In Western Europe, consumer demand remained stable in Germany and the UK, while in France, the PC segment was impacted by the transition to high-definition TV. Consumers preferred to buy new TVs or a specific box for the TV reception. In the business segment, large organisations are testing and evaluating Windows 10, and major deployment will start at the end of 2016.

These results are preliminary. Final statistics will be available soon to clients of Gartner's PC Quarterly Statistics Worldwide by Region program.