Chris Gaun

A member of the Gartner Blog Network

Chris Gaun
Research Analyst
4 years at Gartner
7 years IT industry

Chris Gaun is an Analyst with Ideas Research. ...Read Full Bio

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With Writing on the Wall in PC Market, Vendors Forced To Evolve

by Chris Gaun  |  January 15, 2013  |  2 Comments

Several data points point to a secular change in the PC market. First, Gartner said yesterday that PC sales dropped 4.9% in the last quarter of 2012, and that the change was partly due to the rise of tablets. This table in Gartner’s press release paints a better picture:

Note: Data includes desk-based PCs and mobile PCs, including mini-notebooks but not media tablets such as the iPad. Data is based on the shipments selling into channels.
Source: Gartner (January 2013)

Company

4Q12 Shipments

4Q12 Market Share (%)

4Q11 Shipments

4Q11 Market Share (%)

4Q12-4Q11 Growth (%)

HP

14,645,041

16.2

14,711,280

15.5

-0.5

Lenovo

13,976,668

15.5

12,915,766

13.6

8.2

Dell

9,206,391

10.2

11,633,387

12.2

-20.9

Acer Group

8,622,701

9.5

9,690,624

10.2

-11.0

ASUS

6,528,228

7.2

6,133,042

6.5

6.4

Others

37,393,913

41.4

39,934,184

42.0

-6.4

Total

90,372,942

100.0

95,018,284

100.0

-4.9

FULL PRESS RELEASE: http://www.gartner.com/it/page.jsp?id=2301715

HP, Dell, and Acer all saw declining PC sales year-over-year.

Second, Dell is rumored to be seeking funding in order to take the corporation private. If it takes place, this leveraged buyout will be in the top 10 of all time in inflation adjusted terms according to the tally by Business Insider. My friend over at Quartz, Simone Foxman, speculates that declining PC sales might be partly responsible for this move by the company with $18+ billion market capitalization. If I can sum up Simone’s reasoning here: PC-heavy vendors like HP have been hammered in the equity markets. The turnaround needed by consumer PC makers is not going to be without bumps and the changes might be easier to make in a private company. Dell has been hit by equity markets as well (chart above).

A year ago, Michael Dell missed tablets influence on PC market.

HP and Dell have both been trying to increase the percentage mix of revenue that comes from enterprise. They are increasing cloud offerings and buying companies to offer more enterprise options. Dell was one of only two hardware vendors in the 2012 Magic Quadrant for Cloud Infrastructure as a Service (the other was Fujitsu). These efforts will be a critical part of Dell’s strategy to evolve as the traditional PC market, which has long served it so well, settles into its golden years.

2 Comments »

Category: PC     Tags:

2 responses so far ↓

  • 1 Why going private won’t save Dell | PandoDaily   January 16, 2013 at 1:50 am

    [...] had been shrinking by about 10 percent a year, but data from Gartner showed that that figure declined by 21 percent in the fourth quarter of 2012. Meanwhile, as PC prices have tumbled, Dell’s product gross [...]

  • 2 Ken Williams   January 17, 2013 at 3:10 am

    Maybe the big story is that the price point for a personal computing devices has fallen so low it has shifted control from corporate IT to the individual. Mobility is another force in this exodus from corporate IT dictating infrastructure to users. Precious bandwidth has become abundant, so who needs a LAN jack five years out? LAN jacks are becoming obsolète, along with routers, PCs. IT departments are losing physical control of their infrastructure as users shift to personal mobile devices to do their work.

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