PC Sales Continue The Downward Trend

Gartner is reporting the biggest slump in PC sales for almost two years. The second quarter report saw 68.4 million units shifted in the three-month period, a year-on-year reduction of 9.4 percent, and the steepest drop in seven quarters.

What’s more, the prediction is that the next quarter will see a further reduction of 4.4 percent.

It seems that the dislike of Windows 8, coupled with the impending arrival of Windows 10, has battered the sales of new PCs.

The fact that most PC users will be entitled to a free upgrade, coupled with the fact that chip and RAM technology haven’t moved on at a spectacular pace this year, has created a perfect storm among consumers who are waiting it out for their machines to be born again on 29 July (or 30, or 31, or possibly 1 August).

If you’re reading this and thinking ‘It’s just a dying market’ you’re not wrong, but you have only to look at today’s IDC figures to see that this really is made of Microsoft.

IDC is even more pessimistic than Gartner, quoting 66.1 million units, down 11.8 percent year on year.

But more importantly, when drilled down to the OEMs, you can see where the real problem lies. Apple is the only company in the top five not rooted in the Windows ecosystem.

It is also the only manufacturer to see a rise in its market share, and is now the fourth biggest vendor in the world, up 16.1 percent. Acer at number five has seen its share plummet by 25.9 percent.

Things were a bit rosier this time last year, because businesses were migrating away from Windows XP (not all of them, mind). This year, there’s no ballast and a lot of hesitation to see exactly how Windows 10 does before big orders start being deployed in enterprises.

“The price hike of PCs became more apparent in some regions due to a sharp appreciation of the US dollar against local currencies,” said Mikako Kitagawa, principal analyst at Gartner.

“The worldwide PC market experienced unusually positive desk-based growth last year due to the end of Windows XP support. After the XP impact was phased out, there have not been any major growth drivers to stimulate a PC refresh.”

IDC’s Loren Loverde, VP of worldwide PC trackers and forecasting, said: “We’re expecting the Windows 10 launch to go relatively well, though many users will opt for a free OS upgrade rather than buying a new PC.

“Competition from 2-in-1 devices and phones remains an issue, but the economic environment has had a larger impact lately, and that should stabilize or improve going forward.”

Meanwhile, Apple, despite having a tiny market share for its OS X operating system at just 7.5 percent, according to this month’s Netmarketshare figures, has managed to avoid being the winner or loser OEM by being the referee, which is a nice trick if you can do it.

Both analyst firms see the top three remaining as Lenovo, HP and Dell. Nothing to see there.

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