Global PC shipments continue to dip

IDC says PC sales will continue to decline into 2016 as the short-term outlook softens

Tags: IDC Middle East and Africa
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Global PC shipments continue to dip IDC says once commercial adoption of Windows 10 accelerates and in combination with upgrades to steadily aging consumer PCs, demand for new PCs will improve for several years.
By  Manda Banda Published  December 8, 2015

Research firm IDC has said worldwide PC shipments are expected to fall -10.0% in the fourth quarter of 2015, pulling year-over-year growth for all of 2015 down to -10.3%.

Referencing its Worldwide Quarterly PC Tracker, IDC said short-term headwinds like the strong dollar, depressed commodity prices and existing inventory have also lowered the outlook for early 2016, although shipments are still expected to stabilise by the end of next year and grow slightly towards the end of the forecast as commercial replacements rise.

IDC pointed out that disruptions from political and economic transitions will have a particularly large impact on Japan, the Middle East and Africa (MEA), Central and Eastern Europe (CEE), and Latin America.

IDC added that once commercial adoption of Windows 10 accelerates and in combination with upgrades to steadily aging consumer PCs, demand for new PCs will improve for several years as replacements will also be boosted by the end of support for Window 7.

"Despite the substantial shift in spending and usage models from PCs toward tablets and phones in recent years, very few people are giving up on their PC, they are just making it last longer," said Loren Loverde, vice president, Worldwide Tracker Forecasting and PC research. "The free upgrade to Windows 10 enables some users to postpone an upgrade a little, but not indefinitely. Some consumers will use a free OS upgrade to delay a new PC purchase and test the transition to Windows 10. However, the experience of those customers may serve to highlight what they are missing by stretching the life of an older PC, and we expect they will ultimately purchase a new device."

Loverde added that as detachable systems become more compelling (including attractive new Wintel designs), some volume will go to detachable tablets rather than traditional PC form factors, which will cut into the PC growth rate, but still supports the PC vendors and ecosystem.

While detachable tablets are expected to grow quickly, they are still a relatively small part of the market, the IDC report stated. As a reference, combining detachable tablets with PCs would boost growth by roughly 3 percentage points - this would result in a trend of declining volume from 2012 to 2015, followed by about 1% growth in 2016 and slightly higher gains in subsequent years.

"Despite declining competition from slate tablets, demand for PCs has remained price-sensitive and slow," added Jay Chou, research manager, Worldwide PC Tracker."Nonetheless, the market is still evolving in more positive ways. IDC expects continued growth for All-in-One desktops as well as Convertible and Ultraslim notebooks. Going forward, these designs will continue to gain share, even in the face of stable PC volumes and competition from detachable tablets."

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