PC Rebound Continues With Growth Over 22% Despite Mixed Economic Outlook, According to IDC
FRAMINGHAM, MA – July 14, 2010 - Despite rising worries over sovereign debt and the pace of economic recovery, the global PC market grew 22.4% in the second quarter of 2010 (2Q10), in-line with forecasted growth of 22.9%, according to the International Data Corporation (IDC) Worldwide Quarterly PC Tracker. The market in EMEA remained remarkably strong – benefiting from some recovery as well as commercial replacements – while growth in the United States and Asia/Pacific was slightly behind projections.
On a worldwide basis, Desktop PC shipments exceeded expectations, helping to confirm signs that businesses are moving ahead with replacements, while Portable PC sales trailed forecast estimates, reflecting the effects of a thus-far jobless recovery on consumer spending.
"The PC market remains robust, and in a recovery phase, despite challenges to a broader economic recovery, such as slow job growth and a more conservative outlook in Europe and Asia/Pacific," said Jay Chou, research analyst with IDC's Worldwide Quarterly PC Tracker. "The factors which led to the recent PC rebound – an aging commercial installed base, a proliferation of low-cost media-centric PCs, and low PC penetration through much of the world – remain key drivers going forward."
"The surge in consumer activity seen in the past two quarters has started to slow as expected, while commercial replacements continue to grow," said Bob O'Donnell, IDC Vice President for Clients and Displays. "We expect consumer activity to remain healthy, but gradually slow through the end of the year, while commercial market growth will be more stable, reflecting a planned replacement cycle over the next several years."
Regional Outlook
United States
* - On the positive side, the market saw a slight up-tick in sequential growth as well as a double-digit jump of 12.6% from the previous year, confirming that the market continued to recover. However, projections for a stronger rebound, near 18% growth, to build on a 19% increase in Q1 and more than 25% gain in Q4, did not materialize. A wait-and-see stance dominated the business sector as a result of economic uncertainty. Although we saw some healthy PC refresh activity, volumes were below our initial estimations as buyers reassessed their spending priorities. As we move into the second half of 2010, slower economic growth and rising costs may undermine the market's ability to drive growth with aggressive pricing.Europe, Middle East and Africa (EMEA)
* – Despite rising concerns regarding unfavorable exchange rates and escalating public debt across a number of countries, the EMEA PC market met expectations in the second quarter of the year, thanks to healthy demand across both consumer and commercial segments. Mature markets enjoyed sustained renewals, while emerging markets benefited from recovery and a more favorable year-on-year comparison versus substantial market contraction one year ago.Japan
* – The Japan market continued to expand by double-digits in the second quarter, but did not approach the more than 25% growth seen in the first quarter. Both Desktop and Portable PCs contributed.Asia/Pacific (excluding Japan)
* – The region gained nearly 35% compared to a year ago and also had 15% sequential growth, coming in just short of forecasts. Desktop PC volume moved at a brisk pace to help offset lower than expected activity in Portable PCs. Nonetheless, Portable PCs remained a key driver with at least double-digit year-on-year growth in nearly all countries.
Vendor Outlook -
HP
* outperformed the market in the US (14.2%) but growth in international markets slowed to 11% - trailing the company’s performance in the second half of 2009 and a more significant drop from a robust performance in 1Q10.Dell
* had a solid quarter with growth of 19.1%, recapturing second place in total PC shipments. The company benefitedfrom improving business demand along with strong growth in Asia/Pacific and Latin America – as well as rebounding from falling shipments a year ago. Acer Group
* grew slightly slower than the market – primarily a result of strong year-ago performance. This was most evident in the United States and Japan – which saw the slowest growth, while Acer continued to make rapid gains in emerging markets.Lenovo
* had a strong quarter with over 47% growth and impressive gains in all regions, especially EMEA and emerging markets. The company continued to capitalize on its strength in Asia/Pacific (excluding Japan), but also maintained rapid gains in North America and Europe. Strong Portable PC growth was a major driver, but Desktop deals into emerging markets and business renewals also played a part.Toshiba
* saw shipments increase more than 26% for the quarter as its notebooks continued to find good reception in the Asia Pacific (excl. Japan) region. The company also saw solid growth in the US and EMEA as well.ASUS
* continued to make aggressive gains across regions – with global shipments up over 80% from a year ago. Although growth did not match the first-quarter pace, the company continued to expand its distribution network and essentially matched Toshiba for fifth place in total PC shipments.
Top 6 Vendors, Worldwide PC Shipments, Second Quarter 2010
(Preliminary)
(Units Shipments are in thousands)
Rank Vendor 2Q10Shipments MarketShare 2Q09Shipments MarketShare 2Q10/2Q09Growth
1 HP 14,765 18.1% 13,154 19.7% 12.2%
2 Dell 10,616 13.0% 8,910 13.4% 19.1%
3 Acer Group 10,238 12.6% 8,475 12.7% 20.8%
4 Lenovo 8,344 10.2% 5,665 8.5% 47.3%
5 Toshiba 4,343 5.3% 3,441 5.2% 26.2%
5 ASUS 4,318 5.3% 2,352 3.5% 83.6%
Others 28,880 35.4% 24,611 36.9% 17.3%
Total 81,505 100.0% 66,608 100.0% 22.4%
Source: IDC Worldwide Quarterly PC Tracker, July 14, 2010
Top 5 Vendors, United States PC Shipments, Second Quarter 2010
(Preliminary)
(Units Shipments are in thousands)
Rank Vendor 2Q10Shipments MarketShare 2Q09Shipments MarketShare 2Q10/2Q09Growth
1 HP 4,721 25.7% 4,136 25.4% 14.2%
2 Dell 4,408 24.0% 3,974 24.4% 10.9%
3 Acer Group 2,028 11.0% 2,008 12.3% 1.0%
4 Apple 1,618 8.8% 1,402 8.6% 15.4%
5 Toshiba 1,560 8.5% 1,225 7.5% 27.3%
Others 4,021 21.9% 3,560 21.8% 13.0%
Total 18,357 100.0% 16,305 100.0% 12.6%
Source: IDC Worldwide Quarterly PC Tracker, July 14, 2010
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, Mini Notebooks and do not include handhelds and x86 Servers. Data for all vendors are reported for calendar periods.
IDC's Worldwide Quarterly PC Tracker gathers PC market data in 85 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 knagamine@idc.com.
About IDC
IDC is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community to make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. For more than 46 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting http://www.idc.com/ [http://www.idc.com/].
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For more information, please contact:
Loren Loverde
lloverde@idc.com
305-351-3115
Jay Chou
jchou@idc.com
650-350-6464