HP victor in better than expected Q3 PC market

HP victor in better than expected Q3 PC market

Next is Dell with 10.1 million shipments, down by 0.4 percent, followed by Asus with 4.8 million shipments for a 9 percent decline.

The market watcher said a scarcity of DRAM components, which has put a hole in the PC profits of major vendors including Dell EMC, became even more severe in the third quarter of 2017 when compared with the first half of the year.

Loren Loverde, a vice-president at IDC, said the overall results "reflect the stabilisation we expected following component and inventory adjustments". The company's market share for this quarter is 6.9% versus the 7% that was a year ago, with a 5.6% decline in growth. The company experienced double-digit growth in Latin America, while in Asia/Pacific HP Inc. secured positive growth for the fifth consecutive quarter.

Apart from the United States market pulling down global numbers, the shortages of certain components such as the DRAM led to changes in component prices. In the U.S. PC's experienced a notable decline with poor notebook shipments but slightly better desktop shipments.

Lenovo was the No. 2 PC shipper in the third quarter, although Gartner said that the company is "in a downward trend with declining shipments in eight of the last 10 quarters". It appears the company is putting more emphasis on profitability than share gain, according to Gartner. "The countries with stable economies, such as the USA, have created a positive sentiment among businesses, especially for small and midsized businesses (SMBs), which are more vulnerable to external events, such as economic or political".

Weak US back-to-school sales pulled down PC shipments domestically and worldwide in Q3 of 2017, according to a preliminary assessment from Gartner.

Kitagawa argues that while business PCs are "stable", the weak back-to-school sales is yet another sign "PC demand drivers for PCs are no longer effective" in the consumer market.

In Asia/Pacific, PC shipments reached 24 million units in the third quarter of 2017, down 2.1 percent from the same period a year ago.

The results of the top two players last quarter marked some stability in the personal computer industry, which recorded just a 0.5 per cent year on year decrease in shipments to 60.3 million units during the period - better than IDC's earlier prediction of a 1.4 per cent decline. In China, the PC market is estimated to have declined by 5 percent in the third quarter of 2017, with more stability in the business market, particularly in large enterprises, than in the consumer space.

While Apple has the new iMac Pro to look forward to, PC makers will have the new 8th generation chips from Intel which should provide some boost as the line-ups are refreshed.

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