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11 Mar 2016

PC Market Stabilization Remains an Elusive Goal Despite Pockets Of Growth, According to IDC

FRAMINGHAM, Mass., March 11, 2016 – The outlook for PC shipments continues to call for eventual stabilization as competition from other devices eases, upgrades to new models and Windows 10 boost demand, and economic conditions around the world stabilize or improve. However, the decline in PC volume since early 2012 is still expected to linger through 2016 with later years struggling to boost volumes as economic issues and competing products continue to present headwinds, according to the International Data Corporation (IDC) Worldwide Quarterly PC Tracker.

Expectations for the fourth quarter of 2015 and early 2016 were already fairly low as PCs have struggled with competition from tablets and phones as well as weak economic conditions for several years now. However, the impact of falling commodity prices and foreign currencies has further depressed demand, and the ability to upgrade older hardware to Windows 10 has provided an option to further stretch the life of older PCs. Inventory clearing, which had been a challenge for much of 2015, also continues to depress demand from channels – particularly as the market shifted out of the seasonally high-volume fourth quarter into much lower volume first quarter. These factors have reduced the outlook for 2016 by a couple percent to a decline of 5.4% for the year. The outlook for later years has been reduced by about a percent – still technically touching positive growth in 2018 and effectively "stabilizing" volume, although not avoiding small declines in particular quarters and years.

Although competition from tablets in general has diminished, with volume falling 10% in 2015, the detachable tablet market was invigorated with new large-screen models targeting PC replacements. The volume of these products more than doubled in 2015, though that was still under 6% of PC volume. Combining detachable tablets with PCs, the market would still decline about a percent in 2016, and volume would remain well below peak PC shipments from 2011, but the market would return to low-single-digit growth beyond 2016.

"PCs remain an indispensable part of the tech landscape," said Loren Loverde, Vice President, Worldwide Tracker Forecasting and PC research. "However, replacements continue to be postponed, and future shipments increasingly depend on replacing older PCs. Detachable tablets and phablets will remain formidable competitors to traditional PCs throughout the forecast."

Despite the constraints on overall growth, ultraslim and convertible notebooks are expected to grow substantially by 2020, with convertibles more than doubling and ultraslim increasing by over 70% while all-in-one desktop volume will increase by more than a third over the same time. In addition, volume of notebooks with screens smaller than 14 inches will continue to grow, as will lower-priced PCs. The largest PC vendors are still well positioned to consolidate share – and can grow if they leverage these product trends.

"In addition to specific devices, the SMB and education segments are expected to do better than the overall market," said Jay Chou, Research Manager, Worldwide PC Tracker, "There have been indications of faster commercial adoption of Windows 10 than of past operating systems, and that should support some growth in the medium term. Similarly, IT access for students remains a priority, and will drive projects across regions – even though constrained government spending may limit some projects."

PC Shipments by Product Category and Region (Shipments in millions)

Product Category

Region

2016 Shipments (M)*

Market Share

2020 Shipments (M)*

Market Share

5-Year CAGR

Notebook

Mature

86.4

33.1%

80.9

31.8%

-1.3%

 

Emerging

69.8

26.8%

77.3

30.4%

2.0%

Portable PC Total

156.2

59.9%

158.2

62.2%

0.3%















Desktop

Mature

38.8

14.9%

31.1

12.2%

-4.3%

 

Emerging

65.9

25.2%

65.0

25.6%

-0.3%

Desktop PC Total

104.7

40.1%

96.1

37.8%

-1.7%















Total PC

Mature

125.2

48.0%

112.0

44.1%

-2.2%

 

Emerging

135.7

42.0%

142.3

55.9%

1.0%

Grand Total

 

260.9

100.0%

254.3

100.0%

-0.5%

Source: IDC Worldwide Quarter PC Tracker, February 25, 2016

* Forecast data

Table Note: Mature Markets include U.S., Western Europe, Japan, and Canada. Emerging Markets includes Asia/Pacific (excluding Japan), Latin America, Central and Eastern Europe (CEE), Middle East, and Africa (MEA).

Taxonomy Note: PCs include Desktop, Mini Notebook and other Portable PCs which possess non-detachable keyboards, and do not include handhelds or tablets such as the Apple iPad, Microsoft Surface Pro, or Android Tablets.



This chart is intended for public use in online news articles and social media. Instructions on how to embed this graphic are available by clicking here.



IDC's Worldwide Quarterly PC Tracker gathers PC market data in more than 80 countries by vendor, form factor, brand, processor brand and speed, sales channel and user segment. The research includes historical and forecast trend analysis as well as price band and installed base data. For more information, or to subscribe to the research, please contact Kathy Nagamine at 650-350-6423 or knagamine@idc.com.

About IDC Trackers

IDC Tracker products provide accurate and timely market size, vendor share, and forecasts for hundreds of technology markets from more than 100 countries around the globe. Using proprietary tools and research processes, IDC's Trackers are updated on a semiannual, quarterly, and monthly basis. Tracker results are delivered to clients in user-friendly excel deliverables and on-line query tools. The IDC Tracker Charts app allows users to view data charts from the most recent IDC Tracker products on their iPhone and iPad. The IDC Tracker Chart app is also available for Android Phones and Android Tablets.

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a subsidiary of IDG, the world's leading technology media, research, and Events Company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC.

Coverage
Topics Covered

Desktop PC, Portable PC, Tablet PC

Contact
For more information, contact:

Loren Loverde
lloverde@idc.com
786-563-8289

Jay Chou
jchou@idc.com
650-350-6464

Michael Shirer
press@idc.com
+1 508-935-4200