uploads/2015/10/PC-vendor21.png

PC Shipments Continued Their Decline in 3Q15

By

Updated

PC shipments fell 7.7% in 3Q15

Previously in the series, we discussed AMD’s (AMD) fiscal 3Q15 earnings, which were announced on October 15, 2015. Sluggishness in the PC market continued to impact AMD’s earnings. Gartner reported that in 3Q15, global PC shipments stood at 73.7 million, a fall of 7.7% on a year-over-year basis. The top two PC manufacturers, Lenovo (LNVGY) and HP (HPQ), both reported a decline in PC shipments in 3Q15, as the below presentation shows.

Gartner stated that Desktop PCs showed high single-digit declines while notebook PCs and the premium ultramobiles segment, which includes Apple’s (AAPL) MacBook Air and Microsoft’s (MSFT) Surface Pro, reported a low-single-digit decline.

Article continues below advertisement

In 2Q15, global PC shipments had fallen to 68.4 million units, a decline of 9.5% on a YoY (year-over-year) basis in 2Q15. It was the steepest PC shipment fall recorded since 3Q13. Debilitating demand and stringent inventory control ahead of the Microsoft Windows 10 launch were cited as the reasons for the decline in PC shipments.

Continued dollar appreciation and minimal impact of Windows 10 launch contributed to PC decline

The strengthening of the US dollar (UUP) against major currencies was again blamed for the slowdown in personal computer (or PC) sales. Mikako Kitagawa, a principal analyst at Gartner, stated, “The global PC market has experienced price increases of around 10 percent throughout the year, due to the sharp appreciation of the U.S. dollar against local currencies. In the third quarter of 2015, this continued to be a major cause for weaker demand in those regions.” EMEA, Japan (EWJ), and Latin America were the regions that reported a double-digit decline in 3Q15. Asia-Pacific and the US showed more stability in 3Q15.

Microsoft Windows 10, launched in 3Q15, was long anticipated to boost the flailing PC market. However, it did little to uplift the sluggishness in the PC market, as Windows 10 primarily encourages consumers to upgrade PCs rather than order new ones.

Advertisement

More From Market Realist