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Lenovo tops in Q1 2014

Lenovo experienced the strongest growth among the top five vendors. Its shipments grew 10.9 percent. Lenovo PC shipments in the first quarter of 2014 grew better than Dell and HP as compared with Q1 2013, says Gartner.

While the end of XP support by Microsoft on April 8 played a role in the easing decline of PC shipments. Worldwide PC shipments declined 4.4 percent to 73.4 million units in the first quarter of 2014,said IDC.

Gartner estimates that PC shipments dipped 1.7 percent to 76.6 million units.

“Worldwide PC shipments have now declined for eight consecutive quarters as a result of shifting technology usage and competition (notably with tablets & smartphones) as well as economic pressures (including high unemployment, slow growth & investment, tight credit, and currency fluctuations) related to the Great Recession, sovereign debt crises, and their related impact on international trade,” said Loren Loverde, Vice President, Worldwide PC Trackers.

Lenovo preserved its lead in total worldwide PC shipments despite a seasonal drop due to the Chinese New Year, IDC stated. Growth in other regions continued at a solid pace although Latin America slowed after a dramatic expansion over the past year. Shipments totaled 12.962 million units; up 10.5% from prior year. Market share for the company was 17.7% during the quarter.

HP remained in the number 2 position, with a market share of 17.1%. PC shipments rose 4.7% year on year, the company’s highest growth in more than two years. Strong results in EMEA had the largest impact on HP‘s results, although growth in the U.S. and Canada also improved notably, IDC said.

Dell grew 9.3% in the first quarter, the third consecutive quarter of positive year-on-year growth. The company’s marketshare was 13.4% during the quarter.

Economies of scale matter tremendously in this high-volume, low-profit market, which is forcing some vendors, such as Sony, out of the market. In contrast, all of the top five vendors, except Acer, registered year-over-year shipment growth. The top thee vendors — Lenovo, HP and Dell — have all confirmed the importance of the PC business as part of their overall business strategies.

Commercial refresh projects, which had already been protracted, received a last push from the impending end of Windows XP support, particularly in Japan.

In addition, slowing demand for tablets seems to have helped constrain previously drastic cutbacks in notebooks. Emerging regions continued to post weak results, with growth in Latin America and Asia/Pacific (excluding Japan) falling even faster than recent declines as both economic conditions and continued tablet penetration stifled PC shipments.

Loren Loverde, vice president, Worldwide PC Trackers, IDC, says, “The economic front seems to be gradually stabilizing and/or improving. However, this has been a slow process, and it is unlikely that sovereign debt issues will be resolved soon or that growth in emerging markets like China will return to prior levels.”

Mikako Kitagawa, principal analyst at Gartner, said: “All regions indicated a positive effect since the end of XP support stimulated the PC refresh of XP systems. Professional desktops, in particular, showed strength in the quarter. Among key countries, Japan was greatly affected by the end of XP support, registering a 35 percent increase in PC shipments. We expect the impact of XP migration worldwide to continue throughout 2014.”

 

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About Kalpana Singhal

Kalpana Singhal is Co-Founder & Editor in Chief at Techplus Media. She is an Innovative & challenger Entrepreneur who started her journey from corporate communication in early 2001 with I.T. Industry followed by Lead - Editorial at BeautyIndia.in in 2008 . You can follow her on twitter, Google+ and Facebook.

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