- Worldwide PC shipments, as informed by Gartner, declined 12.3 per cent in the first quarter of 2020 due to Coronavirus pandemic
- Despite the impact of COVID-19, the top three vendors’ market share remained unchanged from the previous quarter
- Following the first Coronavirus lockdown in China in late January, there was lower PC production volume in February
Worldwide PC shipments totaled 51.6 million units in the first quarter of 2020, a 12.3 per cent decline from the first quarter of 2019, according to preliminary results by Gartner, Inc. After three consecutive quarters of growth, the worldwide PC market experienced its sharpest decline since 2013 due to the COVID-19 outbreak.
“The single most significant influencing factor for PC shipment decline was the coronavirus outbreak, which resulted in disruptions to both the supply and demand of PCs. Following the first lockdown in China in late January, there was lower PC production volume in February that turned into logistics challenges,” said Mikako Kitagawa, research director at Gartner.
She added, “Once coronavirus-related lockdowns expanded to other regions, there were new, sudden pockets of PC demand for remote workers and online classrooms that PC manufacturers could not keep up with.”
Worst year-over-year decline in Asia Pacific
Asia Pacific, as per Gartner, 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 business, 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.
“Deskbased PCs, the primary commercial PC type for the government and education organizations, 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,” read Gartner’s report.
PC shipments in EMEA declined seven per cent year-over-year to 16.8 million units and will likely continue to decline through 2020. The end of the first quarter saw a dramatic drop in both business and consumer PC purchases due to intense Covid-19 related lockdown measures across various countries in the region.
As Coronavirus impacts were most apparent in the U.S. in the first quarter of 2020, the U.S. PC market actually grew 0.8 per cent. However, PC shipments showed a steep sequential decline of 30.2% compared to last quarter. Dell and HP Inc. swapped spots in the U.S. based on shipments, with Dell taking just over 31 per cent of the PC market share.
Top three vendors’ market share remain unchanged
Despite the impact of COVID-19, the top three vendors’ market share 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.
Lenovo maintained its first position in the worldwide PC market. However 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 deskbased PCs in Asia Pacific and Japan.
Dell was the only top vendor that showed year over year shipment growth despite the impact from Covid-19. Dell’s shipments grew in all regions in the first quarter of 2020, except in Asia Pacific. The first quarter of 2020 was the company’s ninth consecutive quarter of shipment growth.
“This quarter’s vendor results underscore the growing economic uncertainties that are tightening PC spending, especially among small and midsize 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. We will start seeing enterprises and consumers alike extending their PC life cycles on a more permanent basis as they focus on preserving cash,” added Kitagawa.
