PC shipments suffered the worst fall since 3Q13

On July 9, 2015, Gartner reported that global PC shipments fell by 9.50% to 68.4 million units on a YoY (year-over-year) basis in 2Q15. It’s the steepest PC shipment fall recorded since 3Q13. Debilitating demand and high inventory levels led to worse-than-expected PC sales in 2Q15. For full-year 2015, PC shipments are expected to fall by 4.40%.

PC Sales Fall in 2Q15 due to the Fall in PC Shipments

This news caused many technology companies stocks to crash. Due to weak PC demand, Advanced Micro Devices (AMD) slashed its revenue expectations by about 8% for its forthcoming fiscal 2Q15 results. As a result, its shares fell by more than 15% on July 7, 2015. Micron Technology (MU) also blamed “weakness in the PC sector” for its poor fiscal 3Q15 results.

PC shipments fall for top PC vendors

As the above chart shows, Lenovo retained its top position in worldwide PC shipments in 2Q15. Hewlett-Packard (HPQ) and Dell held the second and third top vendor positions in 2Q15.

However, Lenovo suffered a YoY shipment fall for the first time since 3Q13. In 2Q15, Hewlett-Packard also faced a shipment fall after five consecutive quarters of PC shipment growth. The tough business climate in the following regions impacted the growth:

  • EMEA, or Europe (EFA), the Middle East, and Africa
  • Latin America
  • Japan (EWJ)

The EMEA region generates significant revenue for technology companies.

The IDC (International Data Corporation) also stated that “In EMEA, weakening demand and high inventory levels inhibited sell-in, driving results below expectations. Vendors continued to clear stock ahead of the back-to-school season and Windows 10 launch.” We’ll discuss this in more detail later in this series.

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