IDC: Apple continues to outgrow the PC market, No. 3 in U.S. market share, No. 5 worldwide

MacDailyNews ^ | Monday, January 12, 2015

[Swordmaker]

Worldwide PC shipments totaled 80.8 million units in the fourth quarter of 2014 (4Q14), a year-on-year decline of -2.4%, according to the International Data Corporation (IDC) Worldwide Quarterly PC Tracker. Total shipments were slightly above expectations of -4.8% growth, but the market still contracted both year on year and in comparison to the third quarter. Although the holiday quarter saw shipment volume inch above 80 million for the first time in 2014, the final quarter nonetheless marked the end of yet another difficult year – the third consecutive year with overall volumes declining. On an annual basis, 2014 shipments totaled 308.6 million units, down -2.1% from the prior year.

Although the U.S. and Europe remained stronger than other markets, growth in these mature regions slowed from earlier in the year. Asia/Pacific (excluding Japan)(APeJ) continued to strengthen, seeing only a very slight increase in volume as a number of public projects and improving consumer demand helped stabilize the market. Similarly, commercial demand, which boosted growth earlier in the year, has slowed while consumer demand is gradually coming back.

Nevertheless, the market progress has been fueled by low-priced systems, including growth of Chromebooks and promotion of Windows 8 + Bing. Constraints on Bing promotions, such as limits on larger-sized devices, could remove a key market driver while some fourth quarter production was attributed to getting ahead of holiday-related production constraints in Asia in the first quarter, effectively shifting volume from early 2015 into the end of 2014.

“The strength from market leaders, as well as improvement in Asia/Pacific and the consumer market more generally, are positive signs for the PC market,” said Loren Loverde, IDC Vice President, Worldwide PC Tracker, in a statement. “Growth of Chrome, Bing, all-in-ones, ultraslim, convertibles, and touch systems similarly make PCs more compelling and competitive. Nevertheless, some of the gains are relatively small, and weakening drivers like Bing promotions and end of XP support transitions, cast a shadow of doubt on the strength of the market going into 2015.”

“The U.S. PC market continued to grow in the fourth quarter, outperforming the global market for the tenth consecutive quarter. The past year was supported by Windows XP to 7 migrations in the commercial segment while consumer volume continued to decline,” said Rajani Singh, Senior Research Analyst, Personal Computing, in a statement. “Moving forward, the U.S. PC market should see flat to slightly positive growth. The U.S. consumer PC market will finally move to positive growth in 2015, strengthened by the slowdown in the tablet market, vendor and OEM efforts to rejuvenate the PC market, the launch of Window 10, and replacement of older PCs.”

Regional Highlights

• United States – Market leader HP had a remarkable quarter with year on year growth jumping to more than 26%. Other key vendors also had strong performances. As a result, the U.S. PC market concentration has increased to 83% of shipments coming from the top 5 vendors. Portable PC growth remains strong with double-digit growth from a year ago, while desktop shipments declined by more than -10%.

• Europe, Middle East, and Africa (EMEA) – PC shipments in EMEA posted a slight increase in the fourth quarter, fuelled mainly by strong consumer demand during the holiday season. Vendors continued to stock up ahead of Christmas and January promotional sales, and before the February change to Bing promotions, which will exclude 15 inch notebooks. This translated into stronger than expected shipments of portable PCs, while desktop PC sell-in remained softer, particularly in the commercial space. Political and economic factors, especially unfavourable exchange rates, also negatively impacted numerous countries across the region.

• Japan – The market continued to slump following a surge of XP replacements a year ago. Vendors took the time to clear excess inventory in the channel, leading to a lean quarter. Volume fell below 3 million units in the quarter, a drop of -35% year on year and its lowest level since the fourth quarter of 2006.

• Asia/Pacific (excluding Japan) – APeJ continued to stabilize with growth rising to positive territory following several years of significant declines. HP had a strong recovery from recent quarters, while Dell continued to gain share. Slowing growth in tablets and smartphones as well as promotions of lower-priced Windows 8 + Bing systems helped relieve some pressure on the PC market.

Vendor Highlights

• Lenovo continued to push hard in EMEA, expanding channels and capturing consumer holiday demand. The company also outpaced the market in the U.S. – though by a smaller margin – and was closer to market growth in other regions. Shipments reached a record 16 million units in 4Q14 with year-on-year growth of 4.9%, and annual shipments up over 10% from last year.

• HP also saw a tremendous quarter with 15.9 million units and year on year growth surpassing 15%. A particularly strong quarter in the U.S. was a key driver, along with some volume for public projects in Asia/Pacific and Africa.

• Dell shipped over 10.8 million units growing 8.5% on the year, much of it based on a strong performance in notebooks in the U.S. and APeJ. Rising growth in APeJ also helped offset slowing growth in the U.S. and Europe.

• Acer grew over 3%, in part due to low volume a year ago but also from the success of its Chromebooks and entry-level notebooks. Acer’s recovery in the U.S. and Europe slowed, in part due to higher year ago numbers.

• Apple kept the number 5 position on a worldwide basis, maintaining its lead over ASUS. The company’s steady growth, along with recent price cuts and improved demand in mature markets, has helped it to consistently outgrow the market.

Top 5 Vendors, Worldwide PC Shipments, Fourth Quarter 2014 (Preliminary) (Shipments are in thousands of units)
IDC: Top 5 Vendors, Worldwide PC Shipments, Fourth Quarter 2014 (Preliminary) (Shipments are in thousands of units)

Top 5 Vendors, United States PC Shipments, Fourth Quarter 2014 (Preliminary) (Shipments are in thousands of units)
IDC: Top 5 Vendors, United States PC Shipments, Fourth Quarter 2014 (Preliminary) (Shipments are in thousands of units)

Top 5 Vendors, Worldwide PC Shipments, 2014 (Preliminary) (Units Shipments are in thousands)
IDC: Top 5 Vendors, Worldwide PC Shipments, 2014 (Preliminary) (Units Shipments are in thousands)

Top 5 Vendors, United States PC Shipments, 2014 (Preliminary) (Units Shipments are in thousands)
IDC: Top 5 Vendors, United States PC Shipments, 2014 (Preliminary) (Units Shipments are in thousands)
Source: IDC Worldwide Quarterly PC Tracker, January 12, 2015

Table Notes:

• Some IDC estimates prior to financial earnings reports.
• Shipments include shipments to distribution channels or end users. OEM sales are counted under the vendor/brand under which they are sold.
• PCs include Desktops, Portables, Ultraslim Notebooks, Chromebooks, and Workstations and do not include handhelds, x86 Servers and Tablets (i.e. iPad, or Tablets with detachable keyboards running either Windows or Android). Data for all vendors are reported for calendar periods.

Source: International Data Corporation

[Swordmaker]

For what it's worth, or generally NOT worth, IDC looked into their tea cup, read the tealeaves, scried their crystal ball, slain the chicken and read the entrails, and has released their quarterly wild-a$$ed guesstimates of what the PC markets have been doing in the latest financial quarter. The last time they missed Apple's sales by 22% low! So take these figures with a 100 pound block of salt. — PING!

Apple and PC prognostication Ping!

If you want on or off the Mac Ping List, Freepmail me.

[roadcat]

I’ll jump in and say what’s going to be said. About all those Chinese components and use of Chinese underpaid workers! By Lenovo, HP, Dell and Acer! Particularly Lenovo, a Chinese company. Probably one good reason why Apple’s sales of computers are growing, an American company building computers with components here in the U.S.A.! Those other companies should take a lesson from Apple! (Waiting for the crazies to respond...)

[VAFreedom]

I love my Mac Mini, but Acers and Lenovo are chinese companies now.let’s also not forget that iphones made by foxpro.

fwiw, i would take taiwanese pc components over chinese anytime. case in point, ASUS is my favorite.

[ziravan]

Win8 explains erosion in PC market.

[jonose]

appl and HP got some boost in 2014 by the end of windows xp support. Some stayed with windows some went with tablets.

2015 HPQ splits in two parts. Lenovo buys the pc/printer part, and Oracle buys the enterprise part to get whats left of EDS/Autonomy. Should net HPQ $50 per share and by this time next year HPQ will no longer exist.

[Swordmaker]

I love my Mac Mini, but Acers and Lenovo are chinese companies now.let’s also not forget that iphones made by fox pro.

iPhones are made by a couple of companies . . . FoxConn and Pegatron. FoxConn is owned by Taiwan's HonHai Precision Industrial Compamy Ltd. Pegatron Corporation is also a Taiwanese company.

[roadcat]

I love my Mac Mini, but Acers and Lenovo are chinese companies now...
fwiw, i would take taiwanese pc components over chinese anytime.

Isn't Acer, Taiwanese?

[AFreeBird]

Balmer explains the erosion of the PC market.

[dayglored]

> Balmer explains the erosion of the PC market.

Ballmer explains the near-death of Microsoft as a serious tech company. Thank God that man is gone.

[Swordmaker]

I’ll jump in and say what’s going to be said. About all those Chinese components and use of Chinese underpaid workers!

Apple lead the way to increase assembly line workers' pay by putting in their contracts that workers on Apple assembly lines be paid three times the going rate for assembly line workers. By 2010, Apple assembly line workers were earning that rate. . . while workers on HP, IBM, Sony, Microsoft, and all other assembly jobs were earning the equivalent of $128 a month plus room and board, Apple's assembly line workers were getting the equivalent of $384 a month assembling iPhones and then iPads plus room and board. This is why there were always thousands of applicants for each job opening when they became available on Apple lines. Terry Gou saw how much more productivity Apple workers turned in announced that by the end of 2012, ALL workers would be raised to that level . . . and by the end of 2013 the rate was the equivalent of $700 with overtime. . . but factory workers must pay room and board, but it is not very expensive. Many opt to live in town.

[VAFreedom]

I stand corrected, acer/aopen is taiwanese.

[roadcat]

I was pointing the finger at Lenovo, HP, Dell and Acer (among others non-Apple), who are rarely chastised although far guiltier than anything Apple is accused of. Anyway, I’m thinking of getting a new iMac (my main machines are a MacMini and Macbook). They’re stated as Assembled in the USA, with a lot of US components. From a cursory search I’m only seeing news articles from 2012 on that. Any idea of how much iMac content is US as of now? Not that it matters, just curious.

[Swordmaker]

I was pointing the finger at Lenovo, HP, Dell and Acer (among others non-Apple), who are rarely chastised although far guiltier than anything Apple is accused of. Anyway, I’m thinking of getting a new iMac (my main machines are a MacMini and Macbook). They’re stated as Assembled in the USA, with a lot of US components. From a cursory search I’m only seeing news articles from 2012 on that. Any idea of how much iMac content is US as of now? Not that it matters, just curious.

i knew what you were doing. . . i was supporting your effort. As to the latest iMacs and Mac mini USA content percentage? I don't know. i haven't seen a box lately. in 2012, they said "Assembled in the USA" which under FTC rules required that better than 90% of the components be manufactured in the USA. . . and the final assembly must be 100% finished in the USA. No computer can be listed as "Manufactured in the USA" as there are zero components that are manufactured completely in the USA. . . as not all of the raw materials even are mined in the USA or even exist here.

[roadcat]

All I could find were articles from 2013 that indicate many were assembled earlier in Fremont, California at Quanta facilities (and they have facilities in Tennessee but maybe nothing to do with this), and later to be assembled in Texas, including components made in Illinois and Florida, and relying on equipment produced in Kentucky and Michigan. Tim Cook indicated in senate hearings in May 2013 that components for newer Macs would be sourced from Arizona, Texas, Illinois, Florida and Kentucky. So this sounds like a good bet more than 90% of components are made here.

[Swordmaker]

Now they’re assembled at plants in Elk Grove, CA, about fifteen miles from where I live, and in Austin, Texas.