World-wide shipments of personal computers fell 13.9% in the
first quarter, according to market researcher IDC, in the biggest
decline since the firm began issuing quarterly numbers in 1994.
The grim estimate of 76.3 million units shipped is the latest
sign that consumers are shifting their dollars to smartphones and
tablets rather than PCs, while responses such as convertible
laptops and Microsoft Corp.'s (MSFT) touch-oriented Windows 8
operating system haven't stemmed the cannibalization.
Indeed, IDC said that Windows 8 hasn't only failed to spur more
PC demand but has actually exacerbated the slowdown--confusing
consumers with features that don't excel in a tablet mode and
compromise the traditional PC experience.
"The reaction to Windows 8 is real," said Jay Chou, an IDC
analyst.
Business customers are also keeping their distance from Windows
8, Mr. Chou noted, saying that companies that used to buy new PCs
every three years before the recession have pushed out their PC
purchases to every four or five years.
Because of the negative signs, IDC said it may need to revise
its worldwide shipment expectations even lower than its
already-gloomy forecast of a 1.3% contraction for the year.
Besides factors affecting all PC vendors, IDC said,
Hewlett-Packard Co. (HPQ) and Dell Inc. (DELL) have been affected
by internal corporate issues. Rival Lenovo Group Ltd. (0992.HK), by
comparison, has been able to maintain its shipments world-wide, and
actually increased its results in the U.S.
H-P maintained its position as the world's largest PC maker,
shipping nearly 12 million PCs. But H-P's shipments were off nearly
24% from the same time last year.
Not far behind was Lenovo, which ranked as the second largest PC
maker with 11.7 million PCs shipped, roughly flat from the same
time last year.
Dell, which has made headlines recently for grim financial
troubles and efforts to take the company private, shipped more than
9 million PCs world-wide--down nearly 11% from the same time last
year.
Apple Inc. (AAPL), whose products ignited consumer interest in
smartphones and tablets, ranked as the third-largest PC maker in
the U.S., shipping 1.4 million computers, a drop of 7.5% from a
year prior. The Cupertino, Calif., company represented 10% of the
U.S. market, IDC said, up from 9.4% last year.
IDC's data didn't include sales of Apple's iPad or any other
tablets, nor any Windows-based computers whose screens can be
detached from their keyboards.
Write to Ian Sherr at ian.sherr@wsj.com
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