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Published on 14/01/2020 4:06:43 PM | Source: Live Mint

Global PC shipments up 2.3% October-December, moved by Windows 7 support end: Gartner

Posted in Stock Market| #Stock Market #US #Gartner #Microsoft #Europe

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NEW DELHI : The global PC vendor unit shipments for the fourth quarter of 2019 rose 2.3% from the same period a year ago to 70.6 million units, according to a study by research and advisory firm Gartner Inc. The growth was induced by Microsoft’s support for its Windows 7 software coming to a stop from Tuesday. This led corporate and individuals to replace their PCs with the latest upgrades.

PC shipments for 2019 surpassed 261 million units, showing 0.6% growth from 2018.

The increasing demand for Windows 10 upgrades especially in United States (US), Europe, the Middle East and Africa (EMEA) and Japan following the end of support for Windows 7, were the key factors behind the growth numbers.

While the PC market in the US grew 4.6%, EMEA 3.6% in the fourth quarter of FY19, the shipments in Asia Pacific (APAC) region declined 6.1% annually to 22 million units. This marks the region’s fifth straight quarter of decline. The study attributes this decline to weaker PC spending in China, which accounts for almost 60% of overall APAC PC market, due to political and trade concerns.

“The relatively stable economic conditions in the U.S. compared with previous quarters, coupled with the end of Windows 7 support, loosened up spending on PCs," says Mikako Kitagawa, senior principal analyst at Gartner said in a press statement.

The demand is likely to grow in the future as many of the businesses in emerging markets are yet to upgrade to Windows 10. “We expect this growth to continue through this year even after Windows 7 support comes to an end this month, as many businesses in emerging regions such as China, Eurasia and the emerging Asia/Pacific have not yet upgraded," Kitagawa added.

The demand for PCs has largely driven by enterprises in five of the last seven quarters while consumer PC demand continues to be weak. Kitagawa pointed out, the shipments would have been a lot higher had it not been for the shortage of Intel CPUs which started mid-last year and slowed down delivery of PCs to enterprise customers by the top three vendors.

Speaking of PC vendors, the top three Lenovo, HP and Dell accounted for 65% of the overall PC shipments in Q4 2019, up from 61% in Q4 2018. With 24.8% market share and 17,498 units Lenovo was the market leader, while HP was at a close second with 22.8% market share and 16,129 units. The other vendors in the top six were Dell which shipped 12,114 units and had market share of 17.2%. Apple shipped 5,262 units and had market share of 7.5%, Asus shipped 4,062 units and had a market share of 5.8%, while Acer shipped 3,994 units and had a market share of 5.7%.

According to Gartner, the shipments include desktop PCs, notebooks and ultramobile premium devices such as Microsoft Surface, but not Chromebooks or Apple iPads.