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HP Led the Global PC Market at the End of Q1

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Shipments fell in the last quarter

The global PC market is a mature industry whose shipments fell 3.0% YoY (year-over-year) to 58.48 million units in the first quarter of 2019, according to market research company IDC.

HP (HPQ) continued to lead the PC market with a share of 23.2% at the end of the first quarter, up from 22.7% in the previous year’s period. HP’s shipments fell 0.8% YoY in the first quarter and were well below the industry decline.

China’s (FXI) Lenovo (LNVGY) was the second-largest player with shipments of 13.42 million units and a share of 23.0%. Dell Technologies (DVMT) took the third spot with a share of 17.7% as shipments grew 1.9% to 10.38 million units.

Other top players included Apple and Acer Group with market shares of 6.9% and 6.1%, respectively.

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HP experienced robust growth in Japan

According to IDC, HP’s shipments grew in the double digits in the first quarter, “largely due to the end of support for Windows 7.” Dell and Lenovo were the only two players to have experienced YoY gains in PC shipments in the quarter.

Apple too gained market share despite a marginal fall in its shipments. Its consumer demand has been soft for a while now. Global PC shipments fell 2.1% in 2018 as well. HP’s Personal Systems business segment saw its revenue rise 1.8% in the second quarter of fiscal 2019.

HP’s Personal Systems sales growth slowed from 14.0% in the second quarter of fiscal 2018 to 12.0% to the third quarter of fiscal 2018 and 11.0% in the fourth quarter of fiscal 2018. Its sales have grown just 2% in the last two quarters.

This weakness has driven HP’s shares lower in the last 18 months. However, HP has managed to achieve revenue growth despite declining shipments due to a higher average selling price.

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