PC Market Growth Tops 17% As Low-Cost and Portable PCs Continue To Fuel Domestic And International Markets
Worldwide PC shipments increased by more than 17% in the third quarter despite rising interest rates and oil prices, and a more conservative economic outlook, according to IDC’s Worldwide Quarterly PC Tracker. The appeal of both low-cost and portable systems continued to drive substantial growth. International markets continued to grow quickly, but even U.S. shipments grew by 11% over the prior year. The latest data show total worldwide PC shipments increasing by 17.1% year on year versus an August forecast of 13.3%.
“We continue to see remarkable growth in the PC market and relative independence from broader economic trends,” said Loren Loverde, director of IDC’s Worldwide Quarterly PC Tracker. “Currently, the economic environment is not the critical factor affecting PC adoption cycles. What we’re seeing now is a combination of PC replacements and new users responding to low-price milestones. Slowing economic growth should eventually constrain PC demand, but for the moment, the outlook remains quite strong.”
“Notebook adoption continued to drive PC growth in the U.S. complemented by the desktop market which was stronger than expected due to aggressive pricing,” said Richard Shim, senior research analyst of Client Computing at IDC. “The third quarter is typically defined by the back-to-school season, which was particularly strong this year. Notebooks were a significant influence in the consumers’ back-to-school shopping and that carried over to other markets.”
Regional Outlook
— United States – A strong back-to-school season provided a
boost to the market and mid-tier vendors performed well
following distribution channel adjustments. Hurricane Katrina,
which made landfall in Louisiana on August 29, likely had some
impact on the last month of the quarter, although a larger
impact is expected for the fourth quarter as rising fuel
prices and falling consumer confidence contribute to economic
and inflationary worries.
— EMEA – Small business and consumer purchases related to
European Union expansion, general infrastructure investments,
and low prices continued to fuel the surge in both portable
and desktop systems. A solid back-to-school market and overall
strong growth set the stage for a robust fourth quarter.
— Japan – The consumer market continued to improve, pushing
growth into double-digits in response to attractive new
product launches. The commercial market also remained strong
despite expectations of slowing growth.
— Asia/Pacific – Rising oil prices and measures to control the
Chinese economy have done little to constrain PC growth. Low
prices and rising adoption continued to fuel both business and
consumer purchases. Demand for portable PCs, which now account
for over 20% of total shipments, also remained strong.
Vendor Highlights
— Dell – Dell had another solid quarter with strong growth
across all regions. Total growth of almost 17.8% was down from
a surge of almost 24% in the second quarter, but up from a low
of 14% in 1Q05. The company benefited from particularly strong
growth in EMEA, Asia/Pacific, and Latin America, although
other vendors also fared well in EMEA.
— HP – HP continued to gain momentum with growth of 17.9%
boosted by its leadership position in the rapidly growing EMEA
region and by a solid performance in Asia/Pacific. The company
also saw strong growth of portable systems and in both
enterprise and consumer segments.
— Lenovo – Lenovo performed well in its second quarter
post-merger. Total shipments were up over 13% year on year
with record volumes across form factors. Although year-on-year
growth was slightly behind the market, it improved
significantly from the second quarter and sequential growth
was above market. The growth reflects the company’s success
integrating IBM and Lenovo and growing comfort with the new
company among clients.
— Acer – Acer continued its rapid expansion with growth over 50%
in the third quarter. Although growth was down from a peak in
the second quarter, the company continued to see rapid growth
in EMEA and is building momentum in North America and
Asia/Pacific.
— Fujitsu/Fujitsu Siemens – Fujitsu Siemens continued to gain
share in the third quarter, although growth remains focused in
Europe. Shipments in EMEA were up over 28% in the third
quarter, accounting for nearly 65% of total volume. Japan
accounted for nearly one third of shipments, but growth was
roughly flat.
— Gateway – Gateway delivered its second consecutive quarter of
significant recovery. Following years of decline and the
acquisition of eMachines in 2Q04, the company now appears to
be on the right track. Total shipments grew by over 25% in the
third quarter – down a couple points from the second quarter,
but still substantially ahead of the market. The company
clearly leveraged its new distribution partners and appears
well positioned to capture consumer demand in the fourth
quarter.
— Apple – Apple cranked up its performance another notch,
boosting growth in total PC shipments by 48%. The company
refreshed the Mac-Mini line and its PC business continues to
benefit from the rapid growth of its music business. Growth
was particularly strong in its retail outlets and in Europe,
although growth in the Americas and Japan was also healthy.
Top 5 Vendors, Worldwide PC Shipments, Third Quarter 2005 (Preliminary) (Units Shipments are in thousands) 3Q05 3Q05 Market 3Q04 Market Growth Rank Vendor Shipments Share Shipments Share 2005/2004 —————– —— ——— —— ——— —— ———- 1 Dell 9,483 18.0% 8,050 17.9% 17.8% 2 HP 8,464 16.0% 7,178 15.9% 17.9% 3 Lenovo 4,072 7.7% 1,163 2.6% 250.2% 4 Acer 2,493 4.7% 1,622 3.6% 53.7% Fujitsu/Fujitsu 5 Siemens 1,995 3.8% 1,735 3.8% 15.0% Others 26,303 49.8% 25,347 56.2% 3.8% All Vendors 52,809 100.0% 45,095 100.0% 17.1% 3 Lenovo (Merged) 4,072 7.7% 3,602 8.0% 13.1% Notes: — Shipments include shipments to distribution channels or end users. OEM sales are counted under the vendor/brand under which they are sold. — PCs include Desktop, Notebook, Ultra Portable, and x86 Servers. — PCs do not include handhelds. Data for all vendors are reported for calendar periods. — Data for Lenovo includes shipments for IBM PCD (including Desktop and Portable PCs and excluding x86 Servers and Personal Workstations) starting in 2Q05, and only Lenovo data for prior quarters. This reflects the legal status of the companies, which merged during the second quarter of 2005. Source: IDC, October 17, 2005 Top 5 Vendors, U.S. PC Shipments, Third Quarter 2005 (Preliminary) (Units Shipments are in thousands) 3Q05 3Q05 Market 3Q04 Market Growth Rank Vendor Shipments Share Shipments Share 2005/2004 —————– —— ——— —— ——— —— ———- 1 Dell 5,638 33.2% 5,023 32.8% 12.2% 2 HP 3,450 20.3% 3,133 20.5% 10.1% 3 Gateway(a) 1,082 6.4% 800 5.2% 35.2% 4 Lenovo 757 4.5% 0 0.0% N/A 5 Apple 737 4.3% 510 3.3% 44.6% Others 5,305 31.3% 5,826 38.1% -8.9% All Vendors 16,969 100.0% 15,293 100.0% 11.0% Lenovo 4 (Merged) 757 4.5% 711 4.6% 6.4% Notes: — (a) IDC estimates prior to Gateway’s financial earnings report. — Shipments include shipments to distribution channels or end users. OEM sales are counted under the vendor/brand under which they are sold. — PCs include Desktop, Notebook, Ultra Portable, and x86 Servers. — PCs do not include handhelds. Data for all vendors are reported for calendar periods. — Data for Lenovo includes shipments for IBM PCD (including Desktop and Portable PCs and excluding x86 Servers and Personal Workstations) starting in Q2 2005, and only Lenovo data for prior quarters. This reflects the legal status of the companies, which merged during the second quarter of 2005. Source: IDC, October 17, 2005
IDC’s Worldwide Quarterly PC Tracker gathers PC market data in 55 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 IDC’s Worldwide Quarterly PC Tracker, please contact Kathy Nagamine at 650-350-6423 or knagamine@idc.com. You may also contact IDC’s sales hotline at 508-988-7988 or email sales@idc.com.
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