Industry analyst International Data Corp. (IDC) recently released its Worldwide Quarterly Personal Computing Device Tracker which reveals that Worldwide shipments of traditional PCs, comprised of desktops, notebooks, and workstations, reached 70.4 million units in the third quarter of 2019 (3Q19).

The trade tensions between the United States and China together with the increasing demand in the commercial segment somehow helped in the second consecutive quarter of growth with shipments increasing by 3% over the third quarter of 2018.

“With higher tariffs on the horizon PC makers once again began to push additional inventory during the quarter though the process was a bit more difficult as many faced supply constraints from Intel, leaving AMD with more room to grow,” said Jitesh Ubrani, research manager for IDC’s Mobile Device Trackers. “The trade tensions are also leading to changes in the supply chain as most notebook manufacturers are now prepared to move production to other countries in Asia, such as Taiwan and Vietnam.”

Have you read “IDC: PC Shipments Up 4.7% Year Over Year in Q2 2019”?

“Commercial demand should accelerate as enterprises work through the remainder of their Windows 10 migration,” added Linn Huang, research vice president, Devices & Displays. “The number of months until the end of service (EOS) date of Windows 7 can be counted on one hand. With Jan. 14, 2020 drawing nigh, the commercial market should be able to digest the extra inventory over the next several quarters. Supply constraints may loom in subsequent quarters, so excess may not be a bad position for channel inventory through the remainder of the year.”

Above expectations

Traditional PC shipments in the Asia Pacific (excluding Japan) posted a year-over-year decline but the market performed above expectations. Back-to-school demand drove the consumer market in China, while online sales and preparations for the Diwali festive season supported consumer shipments in India, as two of the largest countries in the region surpassed the previous forecast. Meanwhile, the commercial market in China recorded a decline in line with expectations, impacted by macroeconomic pressures.

In Japan, both the commercial and consumer markets largely outperformed forecast, driven by Windows 10 migration and the consumption tax increase respectively. Commercial shipments established a new third quarter record beating the mark set in 2013 when Windows XP EOS created similar momentum in the commercial PC market.

The top 5

Nearly 1 of every 4 PCs shipped during the quarter were from Lenovo or one of its subsidiaries as the company once again managed to hold the top position in the market. The company’s strong push in EMEA and Japan, along with a notable commercial presence, helped cement it as the leader during the quarter.

HP Inc. was a close second with 16.8 million PCs shipped during the quarter and the fastest year-over-year growth among the top 5 companies. The company’s notebook lineup, in particular, has been quite strong with 10% year-over-year growth beating the overall rate of 4% for notebooks.

Dell Technologies ranked third, shipping 12.1 million units with 5.3% growth over the previous year. Its strong portfolio of commercial-centric products and a very healthy gaming business has helped the company keep its year-over-year growth streak going since the second quarter of 2016.

Apple refreshed its MacBook Air and Pro and benefited from the back-to-school season to achieve 21% growth over 2Q19. Overall the company still struggled to maintain positive momentum on a year-over-year basis as it continued to face supply constraints.

Acer Group rounded out the top 5 while facing the strongest decline among the top 5. The shortage of Intel processors impacted the company although it still continues to be one of the stronger players in the gaming and Chromebook segments.