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Global PC market improves in Q2, but LatAm still declining sharply

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The global PC market has improved substantially in Q2, coming in ahead of expectations, while PC shipments to Latin America continued to decline sharply in the quarter.

IT market analyst IDC reported that global PC shipments fell by just 1.7% in Q2 to 74.4mn, considerably better than the expected decline of around 7% in the quarter.

Meanwhile, Gartner said that after two years of declines, the PC market remained flat in Q2 with growth of just 0.1% to 75.8mn units worldwide.

A stabilization of PC sales in developed market was offset by a decline in emerging markets, as consumers continued to be drawn by the allure of low-cost tablets, according to Gartner analyst Mikako Kitagawa.

IDC also found that a stronger performance in mature markets was offset by emerging regions as a result of weaker economies and political issues. However, some improvement in emerging markets is expected going forward, according to Loren Loverde, VP for IDC.

PC shipments to Latin America remain in line with general emerging market trends, declining significantly in Q2.

The region saw PC shipments decline 8.7% year-on-year in Q2, according to Gartner Latin American analyst Tuong Nguyen.

Meanwhile, IDC sees even stronger declines in the region's PC industry. PC shipments to Latin America, including desktops and notebooks, fell by approximately 25-27% in Q2, amid continued strong growth of mobile devices such as smartphones and tablets, IDC research and consulting manger Paola Soriano told BNamericas.

Consumer retail purchases have been largely focused on other technologies, such as TVs in the run up to the World Cup, while the availability of low-price smart mobile devices has contributed to their continued cannibalization of the PC market in Latin America, she added.

However, the region's top five PC vendors maintained flat shipments to Latin America during Q2, with the declines being driven by falling shipments on the part of smaller players.

For 2014 as a whole, Latin America's PC market is expected to decline by approximately 22-25%. And while the market is set to improve next year, declines are still forecast to be in the double digits, according to Soriano.

For its part, Gartner is forecasting a decline of 9.1% in PC shipments to Latin America for the full-year 2014.

Globally PC market concentration increased slightly in Q2, as many of the world's largest PC vendors saw growth in unit sales, while declines came from smaller players.

Players other than the top five - Lenovo, HP, Dell, Acer and ASUS - accounted for just 33.6% of the total market in Q2, compared to 40.5% in the same period of 2013 after shipments fell by 18.5% year-on-year, according to IDC.

Article Credit: Bnamericas

Updated 4 Years ago

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Tags:     Gartner     Global PC Market Improvement