PC mkt for Q3 in APAC gets dismal

|October 9, 2015 0
Currency factors add to the dip; mobile segment not as bad as desktop category; soft recovery expected gradually

MUMBAI, INDIA: PC shipments in EMEA totaled 20 million units in the third quarter of 2015, a decline of 15.7 per cent over the same period last year. The currency devaluation continued to be a major contributor of stagnation in EMEA, as prices remained high. The inventory buildup from the first half of 2015 started showing some improvement during the third quarter. The back-to-school sales season was weak in Western Europe, as the introduction of many new products was delayed until the end of September due to the clearing of high inventory.

Asia/Pacific PC shipments reached 26.3 million units in the third quarter of 2015, a 1.7 per cent decline from the third quarter of 2014. Consumer spending continues to be cautious due to weak economies and currency fluctuations. Asia/Pacific mobile PC shipments grew 2.2 per cent in the third quarter, while desk-based PC shipments declined 4.9 per cent.

Worldwide PC shipments totaled 73.7 million units in the third quarter of 2015, a 7.7 per cent decline from the third quarter of 2014, as added by preliminary results by Gartner, Inc. Desktop PCs continued to show weakness with a high-single-digit decline, while the segment that combines notebook PCs and premium ultramobiles (such as the MacBook Air and Microsoft Surface Pro) recorded a low-single-digit decline.

                                 

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“The global PC market has experienced price increases of around 10 per cent throughout the year, due to the sharp appreciation of the U.S. dollar against local currencies. In the third quarter of 2015, this continued to be a major cause for weaker demand in those regions,” said Mikako Kitagawa, principal analyst at Gartner. “These impacted regions, which include EMEA, Japan and Latin America, posted double-digit declines in the third quarter. Asia/Pacific and the U.S. were more stable.”

Windows 10 was launched in the third quarter of 2015, but it had a minimal impact on shipments in the quarter. Gartner analysts said the focus of the Windows launch in the quarter was to upgrade to Windows 10 on existing PCs, rather than ship on new PCs. The Windows 10 rollout will ramp up in 4Q15 holiday sales.

While 3Q15 results illustrated gloomy market conditions for the PC market, there is a positive aspect in the results. According to Gartner’s 2015 personal technology survey, 50 per cent of consumers expressed intention to purchase a PC in the next 12 months, compared with 21 per cent for tablet purchase intention.

“This change in consumer preferences toward PCs was visible in the preliminary data, as we saw positive growth in U.S notebook and premium ultramobile shipments,” Kitagawa said. “Soft recovery is expected to start in 4Q15, as Windows 10 product refreshes start to appear. In the meantime, PC manufacturers should adjust configurations for 2016 without the impact of price hikes seen in 2015, which will lead into more stable market conditions in the upcoming year.”

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