Lenovo surpassed HP
According to market research firm IDC (International Data Corporation), China’s Lenovo (LNVGY) has surpassed HP (HPQ) to reach the top position in the global PC (personal computers) market. At the end of the fourth quarter of 2018, Lenovo grabbed the top spot in the PC space with a share of 24.6%. According to Gartner, Lenovo’s joint venture with Fujitsu in May 2018 led to a major gain in Lenovo’s market share. US-based HP, which became the top player last year, took the second position with a market share of 23.6% in the fourth quarter. In Q4 2018, the other top players in the market included Dell (DVMT), Apple, and Acer Group with shares of 16.5%, 7.2%, and 6.7%, respectively.
PC shipment segment declining
According to IDC’s report, worldwide PC shipments declined 3.7% YoY in the fourth quarter to 68.1 million units. In 2018, global shipments fell around 1.3% to reach about 259.4 million units. A decline in the shipments in the fourth quarter of 2018 was due to the ongoing trade war worries and a supply shortage of PC CPUs (central processing units).
Notably, Intel (INTC) had announced in October that it has been falling short of supplying its ten-nm Intel PC CPUs due to a delay in production and rising CPU demand. The demand for PC CPU is high due to the stabilizing PC market, as more consumers are upgrading their systems. Further, Mikako Kitagawa, a Gartner analyst, stated that “Political and economic uncertainties in some countries dampened PC demand.”