Global PC shipments declined by 12.3% in first quarter of 2020 due to Covid-19 pandemic




Worldwide PC shipments totaled 51.6 million units in the first quarter of 2020, a 12.3 per cent decline from the first quarter of 2019, according to preliminary results by Gartner. After three consecutive quarters of growth, the worldwide PC market experienced its sharpest decline since 2013 due to the COVID-19 outbreak.

“The single most significant influencing factor for PC shipment decline was the coronavirus outbreak, which resulted in disruptions to both the supply and demand of PCs,” said Mikako Kitagawa, research director at Gartner. “Following the first lockdown in China in late January, there was lower PC production volume in February that turned into logistics challenges.

“Once coronavirus-related lockdowns expanded to other regions, there were new, sudden pockets of PC demand for remote workers and online classrooms that PC manufacturers could not keep up with.

“This quarter’s vendor results underscore the growing economic uncertainties that are tightening PC spending, especially among small and midsize businesses. This uncertainty, coupled with the end of the Windows 10 upgrade peak, is causing enterprises to shift their IT budgets away from PCs and toward strategic business continuity planning. We will start seeing enterprises and consumers alike extending their PC life cycles on a more permanent basis as they focus on preserving cash,” said Kitagawa.

Despite the impact of COVID-19, the top three vendors’ market share remained unchanged from the previous quarter. The top three vendors accounted for 65.6 per cent of PC shipments in the first quarter of 2020, up from just over 60% in the first quarter of 2019.

Preliminary worldwide PC vendor unit shipment estimates for Q1 2020 (thousands of units)

Company 1Q20 Shipments 1Q20 Market Share (%) 1Q19 Shipments 1Q19 Market Share (%) 1Q20-1Q19 Growth (%)
Lenovo 12,613 24.4 13,026 22.1 -3.2
HP 11,114 21.5 12,648 21.5 -12.1
Dell 10,158 19.7 9,944 16.9 2.2
Apple 3,555 6.9 3,791 6.4 -6.2
Acer Group 2,900 5.6 3,322 5.6 -12.7
ASUS 2,603 5.0 3,526 6.0    -26.2
Others 8,693 16.8 12,604 21.4 -31.0
Total 51,637 100.0 58,860 100.0 -12.3

The data includes desk-based PCs, notebook PCs and ultramobile premiums (such as Microsoft Surface), but not Chromebooks or iPads. All data is estimated based on a preliminary study and the statistics are based on shipments selling into channels.

Although Lenovo maintained its top position in the worldwide PC market, its shipments declined by 3.2 per cent in the first quarter of 2020 and 22.6 per cent year-on-year in the Asia Pacific region.

HP had a challenging first quarter, with a 12.1 per cent decline in PC shipments after three consecutive quarters of shipment growth. The brand recorded double digit shipment declines in all key regions, taking the hardest hit in desk-based PCs in the Asia Pacific region and Japan.

Dell was the only top vendor that showed year-on-year shipment growth – rising by 2.2 per cent – despite the impact from COVID-19. Dell’s shipments grew in all regions in the first quarter of 2020, except in Asia Pacific, with growth being particularly strong in the Americas where the brand experienced relatively stable business PC demand until March. The first quarter of 2020 was the company’s ninth consecutive quarter of shipment growth.

Regional Overview

PC shipments varied by region depending on the timing of the given government’s response to the coronavirus outbreak. Because coronavirus impacts were most apparent in the US later on in the first quarter of 2020, the US PC market actually grew by 0.8 per cent. However, PC shipments showed a steep sequential decline of 30.2 per cent compared to last quarter.

Dell and HP swapped spots in the US based on shipments, with Dell taking just over 31 per cent of the PC market share.

Preliminary US PC vendor unit shipment estimates for Q1 2020 (thousands of units)

Company 1Q20 Shipments 1Q20 Market Share (%) 1Q19 Shipments 1Q19 Market Share (%) 1Q20-1Q19 Growth (%)
Dell 3,458 31.4 3,145 28.8 10.0
HP 2,735 24.8 3,177 29.1 -13.9
Lenovo 1,923 17.5 1,493 13.7 28.8
Apple 1,349 12.3 1,335 12.2 1.1
Microsoft 520 4.7 520 4.8 0.1
Acer Group 337 3.1 300 2.8 12.3
Others 688 6.2 951 8.7 -27.7
Total 11,011 100.0 10,921 100.0 0.8

The data includes desk-based PCs, notebook PCs and ultramobile premiums (such as Microsoft Surface), but not Chromebooks or iPads. All data is estimated based on a preliminary study. The statistics are based on shipments selling into channels.

Asia Pacific showed the worst year-on-year decline of 27.1 per cent since Gartner started tracking the PC market. With COVID-19 originating in China, the country was the largest contributor to this decline as all business, government and consumer activities came to a halt in February. Overall PC shipments in China dropped by over 30 per cent compared to a year ago. Deskbased PCs, the primary commercial PC type for the government and education organizations, experienced the biggest drop of nearly 40 per cent. Mobile PCs declined less – by 20 per cent – as notebook demands were driven by remote employees and e-learning students.

PC shipments in EMEA declined by 7 per cent year-on-year to 16.8 million units and will likely continue to decline through 2020. The end of the first quarter saw a dramatic drop in both business and consumer PC purchases due to intense COVID-19 related lockdown measures across various countries in the region.

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