After 7 years of consistent declines – PC sales finally stopped their slide. Market researchers Gartner and IDC reported that PC sales grew during the fourth quarter of 2019, boosting all of 2019 into the positive. For the entire year, global PC shipments were up 2.7%, according to the IDC. That makes 2019 the “first full year of PC growth” since 2011.
PCWorld reports that 2019 new PC numbers from Gartner and IDC and are remarkably similar. Gartner reported that PC sales grew 2.3% in 2019 Q4 to 70.6 million units and 261 million units for the year. Rival analyst firm IDC largely agreed, estimating that PC unit sales grew 4.8%, to 71.8 million units. IDC said that worldwide PC sales grew 2.7% for 2019 as a whole.
Among the results:
- The top three global PC vendors—Lenovo, HP, and Dell—all consolidated their market share, reaching 65% of the PC market.
IDC and Gartner concur that Lenovo (LNVGY) is the world’s top PC vendor for 2019. IDC reports Lenovo had a 24.8% global market share and Gartner said it had a 24.1%.
- Globally HP (HPQ) ranked #2 with 23.9% by IDC and 22.2% by Gartner.
- Dell was ranked #3 worldwide with 17.4% by IDC and 16.8% by Gartner. Dell’s unit sales climbing by nearly 11%, according to IDC’s estimates.
In the U.S. market the ‘Q4-19 rankings differed:
HP is #1 with a 31.2% market share and a modest 4.4% bump in U.S PC sales for the quarter.
- Dell ranked #2 with a 26.8% market share and a gain of 15.9% for the period.
- Lenovo came in #3 with a 14.9% share and 11.2% increase in share.
The tech prognosticators attributed the surge in sales to firms swapping their hardware to Windows ahead of MSFT”s Windows 7 end of support, giving new PC sales a one-time shot in the arm. Ryan Reith, program vice president with IDC’s Worldwide Mobile Device Trackers, said in a statement.
The market will still have its challenges ahead, but this year was a clear sign that PC demand is still there despite the continued insurgence of emerging form factors and the demand for mobile computing.
Ranjit Atwal, a research senior director at Gartner, in a statement to PCWorld, cast doubt on future growth. He says,
The PC market’s future is unpredictable because there will not be a Windows 11. Instead, Windows 10 will be upgraded systematically through regular updates …As a result, peaks in PC hardware upgrade cycles driven by an entire Windows OS upgrade will end.
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Don’t do your happy dance just yet.
Gartner and IDC both predict global sales to steadily decline again over 2020 as MSFT’s drives to a subscription-based model. Other threats to the PC market include:
China – The Chinese government has ordered all PC hardware and operating systems imported from foreign countries to be replaced in the next three years.
HP- Xerox – I have covered Xerox’s maneuvers to take over HP. The possible disruption to HP by a Xerox hostile takeover could rattle the entire sector. Especially if Acer or Asus cannot scale up fast enough.
History – Data from Statista says that annual PC sales have dropped nearly 1/3 from their peak in 2011.
Year | # of PC's | Change YoY |
---|---|---|
2011 | 364.0 | - |
2012 | 349.3 | -14.7 |
2013 | 315.1 | -34.2 |
2014 | 308.3 | -6.8 |
2015 | 275.8 | -32.5 |
2016 | 260.2 | -15.6 |
2017 | 259.6 | -0.6 |
2018 | 258.5 | -1.1 |
2019 | 261.0 | 2.5 |
2020 * | 254.3 | -6.7 |
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Ralph Bach has been in IT long enough to know better and has blogged from his Bach Seat about IT, careers, and anything else that catches his attention since 2005. You can follow him on LinkedIn, Facebook, and Twitter. Email the Bach Seat here.