HP Closes In on Lenovo in a Consolidating Global PC Market
Gartner and IDC analysts say worldwide PC shipments declined again in the third quarter, and that top vendors are combining to gain more market share.Lenovo and HP Inc. continue to vie for the top spot in a global PC market that continues to slow and that is consolidating around a handful of top vendors. Third-quarter numbers released this week by market research firms IDC and Gartner showed that HP is inching closer to market leader Lenovo, with less than a percentage point separating them in the number of systems shipped. The two analyst firms also said that shipments worldwide continued their decline in the third quarter, driven in large part by the continued demand for other mobile computing devices—particularly smartphones and phablets—and PC users holding onto their systems longer rather than buying new ones. While there is some optimism that new form factors—such as two-in-ones and convertibles—may offer the PC market a reprieve in the near future, the effort to convince more business users and consumers to buy new systems will continue to be a tough slog. "There are two fundamental issues that have impacted PC market results: the extension of the lifetime of the PC caused by the excess of consumer devices, and weak PC consumer demand in emerging markets," Mikako Kitagawa, principal analyst at Gartner, said in a statement. "According to our 2016 personal technology survey, the majority of consumers own, and use, at least three different types of devices in mature markets. Among these devices, the PC is not a high priority device for the majority of consumers, so they do not feel the need to upgrade their PCs as often as they used to. Some may never decide to upgrade to a PC again."
The PC space in emerging markets is not nearly as saturated, but consumers in those countries see smartphones and phablets as their primary computing devices, and they aren't likely to turn to PCs, Kitagawa said.