PC leader Lenovo faces pressure from HP and Dell in Asia Pacific

Ivan Schwartz
January 13, 2019

After losing ground in the smartphone market due to the slower demand for the iPhone, Apple is now declining in the PC market as well, with MacBook sales dropping no less than 3.8% in Q4 2018. Region-wise, the US saw a small increase in volume from the past year, whereas it was all negative in the Europe Middle East, and Africa (EMEA) region and the Asia-Pacific region, excluding Japan, saw a single-digit decline - majorly due to the US-China trade war.

Apple remained in the fourth position with market share of 7.2% and year-on-year growth of -3.8%.

The top three vendors of PCs - Lenovo, HP, and Dell - increased their share of the global PC market, accounting for 63 percent of PC shipments in Q4 2018, up from 59 percent at the same time past year. Both desktop and notebook shipments saw year-on-year declines in 4Q18.

"Just when demand in the PC market started seeing positive results, a shortage of CPUs (central processing units) created supply chain issues", said Mikako Kitagawa, senior principal analyst at Gartner.

IDC had shipments for the year flat (258 million) at -0.4 percent and places HP ahead of Lenovo at the top, but it did say US-China tensions could cause more problems.

Lenovo surpassed HP Inc. and moved into the No. 1 spot in the global PC market in the last quarter of 2018.

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Worldwide PC shipments fell 4.3 percent year-on-year in the fourth quarter to 68.6 million units, and 1.3 percent for full year 2018 to 259.4 million units, according to the latest study from Gartner.

Additionally, said Kitagawa, political and economic uncertainties in certain countries reduced the demand for PCs. The company has recorded three consecutive quarters of double-digit year-over-year shipment growth, despite the stagnant overall market.

"The majority of the PC shipment decline in 2018 was due to weak consumer PC shipments".

The end of the processor shortage will likely help boost PC sales but any further escalation of the United States trade war against China could be devastating for the PC market.

Respective shares of HP and Dell were 21.7 percent and 16.2 percent in the global PC market in 2018, and their shipments were 56.332 million units and 41.911 million units, respectively. Gartner said that holiday sales were no longer a major factor driving consumer demand for PCs.

Other reports by GizPress

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