Business, Hardware

Earnings Preview: PC Market Grows Slowly in 2Q 2011

Right before the time where most companies present their earnings reports for the second quarter of 2011, IDC released market data for the PC market. Worldwide the market saw a 2.6% increase in shipments, which is just short of the 2.9% rate IDC projected. IDC lines out that this is the result of a strong first quarter, which was a week longer though at the expense of the second. Other factors working against PC sales are smartphones and tablets as well as an unfriendly economic environment.

Nevertheless the bean counters are optimistic for the second half of the year. When looking at different regions, it should be noted that in the US the PC market saw a decline of 4.2% compared to the second quarter of 2010. This is due to netbook decline, an unsustainably strong second quarter in 2010 and the shift of corporate expenses towards cloud computing and virtualization, according to IDC.

Other markets fared better than the US. While in Western Europe the situation can be considered similar, there have been increases in Central and Easter Europe as well as the Middle East and Africa. The Japanese market unexpectedly grew by 3%. Due to the earthquake – the projections have been worse – sales in Japan were hit hard in late first quarter and in April due to market reaction on the catastrophic March 11 earthquake and tsunami, followed by component shortage due to manufacturing facilities being damaged. In the rest of the APAC region, IDC reported a 12% growth.

On the vendor side of things, the two market leaders – HP and Dell had similar growth rates with 3% respectively 2.8%. Lenovo posted a strong 22.9% growth and thus managed to move ahead of Acer who had to take a 10.1% decline. ASUS managed to beat Toshiba to the 5th place after a 6% growth. Given the drop in tablet sales, we were not surprised to see that overall, 84.4 million PCs have been shipped in the second quarter of 2011, up from 82.3 million in 2010.

Vendor 2Q11 2Q10 YoY Trend
Shipments Market Share Shipments Market Share
HP 15,263 18.1% 14,823 18% 3%
Dell 10,927 12.9% 10,626 12.9% 2.8%
Lenovo 10,276 12.2% 8,363 10.2% 22.9%
Acer Group 9,160 10.9% 10,190 12.4% -10.1%
ASUS 4,468 5.3% 4,216 5.1% 6%
Others 34,320 40.7% 34,070 41.4% 0.7%
Total 84,413 100% 82,289 100% 2.6%