This IDC update presents findings from IDC's latest research pertaining to the global PC industry as well as analysis of key industry events that occurred within the previous month. In January, PC companies as well as other electronics vendors flocked toward Las Vegas where the Consumer Electronics Show (CES) is annually held. Vendors demonstrated how their products could easily connect and interact with their users, other devices, and the connected home ecosystem. Additionally, PC vendors prominently displayed new hybrid form factors that sought to take full advantage of Windows 8's mobile and desktop features.
In January, Apple, Intel, and Microsoft announced their respective earnings. All three industry leaders reported significant contractions in their PC-related businesses offset by strong growth in other product portfolios. Apple saw gains in its iPhone and iPad product lines, while Microsoft and Intel drove strong growth in the Server and Tools Division and Big Data Group, respectively. All three companies have been challenged by the same broad economic and market conditions that have gripped the global PC landscape.
IDC also released its worldwide and U.S. PC top 10 list of vendors in the previous month. HP retained its leadership position both in the worldwide landscape (17.0%) and in its domestic market (27.6%). Lenovo retained its second-place ranking in the worldwide market for the sixth consecutive quarter since overtaking Dell in the second half of 2011. Dell, Acer, and ASUS rounded out the top 5 in that order.
January marked the new calendar year, and as such, IDC released its Worldwide and U.S. Phone, Tablet, and PC 2013 Top 10 Predictions (see IDC #239155, January 2013). Specifically pertaining to the PC industry, IDC predicts that the imminent end of life of Windows XP will accelerate PC refreshes in the enterprise segment, driving significant growth of commercial PCs in 2013.
Finally, at the outset of February, Dell announced plans for a leveraged buyout (LBO) of its outstanding shares. The $24.4 billion deal will be financed by cash and equity from Michael Dell, Silver Lake, and Microsoft as well as debt issued from a multitude of banks. The deal is pending shareholder approval, but the purchase price of $13.65 per share represents a 25% premium over its market price when news of a potential Dell buyout started to circulate. Dell will benefit from its return to private ownership as it should be able to become more agile in adjusting to a volatile market away from Wall Street's scrutiny. Analysis of this deal and aforementioned industry events follows, and highlights of this document include:
- Intel demonstrates its reference design North Cape, a hybrid device with the build of an Ultrabook and a detachable touchscreen tablet, marking its deepest involvement with a PC reference design.
- Worldwide PC shipments declined sequentially by 0.12% in 4Q12 — especially troubling given the historic demand boost during the holiday season and considering the launch of Microsoft's Windows 8.
- HP gains 1.2% of the worldwide PC market, mostly at the expense of Acer, which conceded 1.5% of its market share in 4Q12.