While the economic crisis continues to unfold, low-cost Portable PCs continue to appeal to consumers and support growth in the PC market. Worldwide PC shipments were down 7.1 percent year over year in the first quarter of 2009 (1Q09) - slightly better than a projected decline of 8.2 percent — according to IDC’s Worldwide Quarterly PC Tracker.
While concern over the global recession and the fear of rising unemployment continues to weigh on commercial spending and consumer confidence, PC demand has nevertheless remained somewhat resilient compared to the last downturn. Falling prices, fueled in part by Mini Notebook PCs and added efforts in channel development, have helped to minimize the market contraction.
In the United States, the PC market fared better than expected, even outperforming the global market and many emerging regions. Record low prices and the steady penetration of Mini Notebooks helped drive PC shipments. HP and Acer led the charge, both with remarkable double-digit growth. Desktop shipments suffered greatly, essentially affected by stalled demand in the enterprise market.
IDC found that the Europe, Middle East, and Africa (EMEA) region recorded its first yearly decline since the 2001 recession. Despite some signs of resilience at the end of last year, Japan has succumbed to economic pressure like other regions. Mini Notebook PC adoption continued to grow, but commercial and desktop volume continued to fall. In Asia/Pacific except Japan (APeJ), most major countries came close to forecasts, balancing another sizable decline in India. Desktop shipments declined faster than expected, especially as commercial activity remain weak. Consumer portables were the main driver for the region, particularly in Greater China.
HP grew 2.9 percent overall and claimed the number one spot in the US. Sales were boosted by solid demand in consumer notebooks, especially in the US and Japan, which saw double-digit growth in part from a strong showing in the retail channel. Internationally, HP shipments were down just one percent from a year ago while the total market was down nearly eight percent.
Dell had a tough quarter across the board, though it fared better in some emerging regions. A weak commercial market resulted in faster declines in desktops while its portable sales struggled to address competition and the shift to low priced consumer systems. However, its recent alliance with Ingram Micro and Tech Data could pay dividends in short order.
Acer had a solid quarter with shipments increasing nearly seven percent from a year ago. The company continues to expand rapidly in the Americas. Growth remained positive, but slower than recent periods in EMEA and Asia/Pacific. Acer is pushing quickly into large-screen Mini Notebooks, building on its success in this category.
Lenovo saw total growth in-line with the market as gains in Asia/Pacific offset losses elsewhere. Lenovo shipments in APeJ were roughly flat from a year ago while the rest of the market saw declines. Although this reflects the company’s stated focus on Asia/Pacific, it risks letting other regions deteriorate. The company struggled through a management change in Japan, producing Lenovo’s slowest growth, but Americas shipments were also down nearly twenty percent from a year ago.
Toshiba finished 1Q09 with 11.6 percent growth. Its continuing focus on Portable PCs contributed to share gains in every region. The company saw strong growth in the US and APeJ, while growth in EMEA and Japan slowed.
