uploads///PC Shipments mkt share

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

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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%.

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.

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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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