Lenovo beats HP as leading PC vendor

According to the latest report from International Data Corp. (IDC), global PC shipments totalled 75.6 million units in 2Q13, down 11.4 per cent compared to the same quarter in 2012 but slightly better than expected. Total shipments were effectively right on forecasts of 75.4 million and growth of -11.7 per cent, although Europe, Middle East, and Africa (EMEA) and Asia/Pacific (excluding Japan) (APeJ) were a few points below expectations with the difference made up in the U.S., noted the market analytics firm.

The numbers reflect a market that is still struggling with the transition to touch-based systems running Windows 8 as well as justifying ultrabook prices in the face of economic pressures and competition from tablets and other devices. A silver lining is that a number of vendors and regions seemed to be focused on inventory reduction during the second quarter, which could reflect planned launches of new models as well as lower inventory going into the second half of the year. However, it also reflects some caution among vendors and the channels in the face of remaining challenges for PCs and more than a year of declining shipments.

One positive sign is that HP and Dell saw growth improve over recent quarters, possibly indicating stronger performance in coming quarters and reflecting more commercial replacements as we get closer to the end of Windows XP support. Lenovo also grew faster than the market (as well as faster than HP and Dell) although Lenovo growth slipped below zero at -1.4 per cent and was down from prior quarters. Slow growth for Lenovo reflects the company's focus on China, which represents over 50 per cent of Lenovo shipments, and where short-term economic and inventory hurdles cut into 2Q13 shipments.

U.S., posting a decline in shipments of just -1.9 per cent, was a substantial improvement from double-digit declines in three of the past four quarters. While positive, this recovery was enabled by lower volume in 2Q12 and supported by a marked reduction in old inventory that enabled a more aggressive channel uptake. Additionally, wider selections of Windows 8 models offered by top vendors and migration from Window XP to Win7 helped to push volume higher than anticipated. Dell managed to climb above 3.8 million units for the first time since 2011, gaining a few points of share in the U.S. PC market. HP maintained its leadership position, growing roughly even with the market. These two vendors represented nearly 50 per cent of total U.S. PC shipments in 2Q13.

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