PC sales fall on tablets, smartphones revolution

Industry reports released on Tuesday showed that shipments of personal computers slid anew in the recently ended quarter as lifestyles continued to shift to smartphones and tablets.
Worldwide PC shipments in the third quarter of this year totaled 68.9 million units in a 5.7 % decline from the same period a year earlier, according to preliminary estimates by Gartner.
International Data Corporation put the figure even lower in a Worldwide Quarterly PC Tracker report that said just shy of 68 million units shipped in a year-over-year drop of 3.9 %.
It was the eighth quarter in a row that PC shipments have dropped, marking the longest duration of decline in the history of the industry, according to Gartner.
"There are two fundamental issues that have impacted PC market results: the extension of the lifetime of the PC caused by the excess of consumer devices, and weak PC consumer demand in emerging markets," said Gartner principal analyst Mikako Kitagawa.
Kitagawa cited a Gartner personal technology survey indicating that most consumers own and use at least three different types of computing devices, with PCs low on the priority list.
Challenges faced by PC makers include weak back-to-school demand and ongoing cool interest by consumers in general, especially those in emerging markets, according to Gartner.
"In emerging markets, PC penetration is low, but consumers are not keen to own PCs," Kitagawa said.
"Consumers in emerging markets primarily use smartphones or phablets for their computing needs, and they don`t find the need to use a PC as much as consumers in mature markets."
Chinese titan Lenovo clung to its spot as top PC maker with about 21 % of the market, but US-based Hewlett-Packard pulled almost even, according to both industry trackers.
Lenovo lost ground during the quarter, while second-place HP and third-place Dell both gained.
Slow growth in China, a huge market for Lenovo, made it tough for the company to defend a lead it established in 2013, IDC reported.
The quarter was the sixth consecutive year-on-year decline in PC shipments for Lenovo, which continued to outpace the market and made strong gains in key markets like the United States, according to IDC.
IDC said that the quarterly results were actually better than it had expected and that PC vendors were actually rebuilding inventories after cutting them for a year of more.
"We are very pleased to see some improvement in the market," said IDC Worldwide PC Trackers and Forecasting vice president Loren Loverde.
"Industry efforts to update products to leverage new processors and operating systems, to deliver a better computing experience encompassing more mobile, secure and faster systems, and to accelerate PC replacements have been critical."
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES

LIC Saral Pension Plan: How to get Rs 64,000 annual pension on Rs 10 lakh one-time investment in this annuity scheme that everyone is talking about

Gratuity Calculation: What will be your gratuity on Rs 45,000 last-drawn basic salary for 6 years & 9 months of service?

Rs 1,500 Monthly SIP for 20 Years vs Rs 15,000 Monthly SIP for 5 Years: Know which one can give you higher returns in long term

LIC Saral Pension Plan: How much should you invest one time to get Rs 64,000 annual pension for life?

Income Tax Calculations: What will be your tax liability if your salary is Rs 8.25 lakh, Rs 14.50 lakh, Rs 20.75 lakh, or Rs 26.10 lakh? See calculations

8th Pay Commission Pension Calculations: Can basic pension be more than Rs 2.75 lakh in new Pay Commission? See how it may be possible

SBI Revamped Gold Deposit Scheme: Do you keep your gold in bank locker? You can also earn interest on it through this SBI scheme

Monthly Pension Calculations: Is your basic pension Rs 26,000, Rs 38,000, or Rs 47,000? Know what can be your total pension as per latest DR rates
10:36 AM IST