Tablets, Smartphones Hinder PC Market

by CXO News Desk    Jul 12, 2012

smartphones beat PC marketA recent report from research firm Gartner revealed that the worldwide sales of PCs fell 0.1 percent in the second quarter of 2012 as both enterprise and end-user consumers are focusing on newer gadgets such as smartphones and tablet PCs.

According to the quarterly report from Gartner, PC shipments, excluding tablet PCs, totaled 87.5 million units in the second quarter of 2012, which indicates a minute dip year-over year.

“In the second quarter of this year, the PC market went through its seventh consecutive quarter denoting flat to single-digit growth,” said Mikako Kitagawa, Analyst at Gartner. She added that even though the expectations for the thin and light notebook segment, popularly called ultrabooks were relatively high, it was not very significant and had little impact on the overall PC sales.

The research noted that both end user and enterprise customers are refraining from spending on PCs for the primary reason that they are increasingly going for media tablets, smartphones and other modern technology products and services.

Kitagawa observed that this trend is more noticeable in the mature market as PCs are highly saturated in these markets. The research revealed that even though there was a slight dip in the global market, the Asia Pacific PC market grew 2 percent, as shipments reached 31.8 million units. The weak U.S. and European economic situation, coupled with the slowing economy in China, affected the region’s market sentiments where people reacted by scaling back on spending due to the uncertainties.

According to Kitagawa, “There was the tightening of budgets in the professional segment, as well as a lack in new government initiatives to stimulate IT purchasing activities. Enterprises spent on alternative devices or remained cautious on discretionary spending.

So long as PC vendors are concerned, Hewlett-Packard continued to be the top PC seller with 14.9 percent market share even though its global shipments declined 12.1 percent. This was followed by Lenovo and Acer with global shipments dipping at14.7 percent and 11 percent respectively. Dell occupied the fourth position at 10.7 percent.