Global PC shipments stalls in Q2

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The results are slightly below IDC’s May projections of 2.1 percent year-on-year growth, but in-line with projections of a slow second and third quarter before faster growth by year end. Part of the reason for slow 2Q12 sales was disappointing sell-out of distribution channels during the first quarter. This limited demand from channels that are wary of building inventory ahead of new product launches this fall. Moreover, consumers remained reluctant about purchasing PCs in this environment of tech transition and soft economics. Ultrabooks have not yet produced a significant rise in volumes ? in part due to anticipation of improvements such as Windows 8, which is expected later this year, but also due to pricing. Constrained demand in Europe and the US has also been felt in emerging markets for some time, but the second quarter brought another milestone of sorts as Asia-Pacific (excluding Japan) showed flat year-on-year growth; its worst performance in years. “These latest results validate IDC’s expectation that the second quarter would be a transition period where both economic factors and anticipation for new products in the second half of the year would result in relatively low PC shipment growth,” said Jay Chou, senior research analyst at IDC. “The announcement of a Windows 8 launch date, as well as broader communication of new features in the OS, are key steps that would help to address uncertainty about new product availability and help consumers and channels plan their purchases.” “The US market suffered a double-digit contraction in the second quarter as market saturation and economic factors combine with anticipation of Windows 8 and other changes later in the year. In this context, consumers are delaying purchases, and vendors and retailers are slowing down their PC activities to clear existing inventories. The situation is exacerbated by consumer notebook saturation, a slowing replacement cycle in the commercial sector, and the big macro-economic and political events affecting confidence and spending,” said David Daoud, research director at IDC. “We don’t expect PCs using Windows 8 to boost growth significantly until the fourth quarter, which leads to a conservative outlook for the third quarter.” Vendor outlook HP remained the top vendor but saw shipments decline significantly across regions. The vendor continues to face pressure from its reorganization efforts and slow market conditions in addition to managing channels as they adapt to market changes. Lenovo remained in second place, but narrowed the gap between itself and HP considerably. While Lenovo continued to grow much faster than the market, it too experienced slower growth than in recent quarters. Dell also faced a tough quarter, slipping below 10 million units a quarter for the first time since 2Q09. The vendor saw share declines across regions as it focuses on profitability and commercial sales. Acer was able to stabilize shipments for another quarter — staying just ahead of the market. The company saw a recovery in Europe as it rebounded from inventory issues a year ago, but also felt the impact of slowing demand in other regions. Asus continued to gain ground at a rapid pace with strong growth across regions. The vendor has most of its volume in EMEA and Asia-Pacific, but is expanding channels and gaining share in other regions as well. ]]>

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