Per the latest data released by the International Data Corporation (IDC), traditional PC manufacturers failed to retain last year’s uptrend in shipments. According to the tech research and data provider, PC vendors shipped 53.2 million desktops, notebooks and workstations during the first quarter, indicating a 9.8% decline from the year-ago quarter’s 59 million units.
In its report, IDC noted that PC shipments fell despite a demand surge in the March-end quarter due to the shift toward the work-and-learn from home trend amid coronavirus-led global lockdown.
Also, lockdown measures to contain the spread of coronavirus in China, the world’s largest supplier of PCs, have significantly delayed productions as well as created logistic and labor issues, resulting in a global PC shipment decline.
The research firm pointed out that supply was at par with last year this January. However, extended closure of factories in China in February and slow resumption of production toward the end of the quarter resulted in a reduction in PC supplies.
How are the Top Vendors Placed?
Per the data compiled by IDC, all top PC manufacturers witnessed year-over-year declines in shipments, except Dell Technologies DELL, which reported a 1.1% improvement. Among the five major vendors, Apple AAPL registered the steepest decline, with its shipment sliding 20.7% year on year.
According to the research firm, Lenovo LNVGY holds the top vendor position, with a market share of 24.1%, followed by HP’s HPQ 22% and Dell’s 19.7%. While Acer holds the fourth spot with a market share of 6.3%, Apple was at the fifth position, with a market share of 5.8%. HP, Acer and Lenovo reported a PC shipment decline of 13.8%, 9.9%, and 4.3%, respectively.
The Days Ahead
Though IDC views a gloomy near-term prospect for the PC market, it is optimistic for the long run. The research firm, nevertheless, does not expect the spike in PC demand during the January-March period to sustain through the rest of the year. It believes consumers, as well as organizations, might curtail their spending on technology as mostly fear that the worst is yet to come.
Nonetheless, IDC opines that the coronavirus-induced global lockdown might open newer avenues of growth for PC manufacturers. Over the long run, businesses would consider investing in remote infrastructure so that they can continue operations if a similar situation crops up again. The research firm also noted that consumers would now prefer keeping their tech setups updated.
Currently, while HP carries a Zacks Rank #2 (Buy), Lenovo and Apple have a Zacks Rank of 3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Dell carries a Zacks Rank #5 (Strong Sell), at present.
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