09 October 2015•Update: 09 October 2015
By Andrew Jay Rosenbaum
ANKARA
Sales of PCs across the world declined sharply in the third quarter of 2015, as volatile exchange rates dampened demand, according to a report by consulting firm International Data Corporation (IDC) released on Friday.
Worldwide PC shipments totaled nearly 71 million units in the third quarter of 2015, according to the report. This volume represented a year-on-year decline of minus10.8 percent – slightly worse than IDC had previously forecast, the report said.
"Currency fluctuations, together with ongoing economic and political instability continued to inhibit demand and constrained shipments," commented Jay Chou, research manager, IDC Worldwide.
And the release of Windows 10, distributed free to many users, held back sales as consumers and companies adapted to the software instead of upgrading to new PCs.
Chou said: "The lackluster volume of PC shipments was consistent with expectations that the third quarter would face challenging financial conditions and be a transition period.
“Across many regions, the channel remained focused on clearing Windows 8 inventory before a more complete portfolio of models incorporating Windows 10 and Intel Skylake processors comes on the scene.
“Vendors and channels were also working to limit price swings in the face of changes in currency exchange rates. Though easing a bit, currency devaluation continued to inhibit PC shipments in the third quarter."
"China's Lenovo continued to be the world's top vendor with 14.9 million units shipped, although that represents a decline of minus 4.9 percent compared with a year ago. Flattening performance in Asia/Pacific and lackluster volume elsewhere were offset by a strong quarter in the U.S. where the vendor continues to aggressively expand partnerships," the report said.
HP remained at number two with shipments declining minus 5.5 percent from a year ago, but still outperforming the market. HP also benefited from a stabilizing U.S. market. according to the report.
Dell at number three shipped more than 10 million units, registering a year-over-year decline of minus 2.9 percent. Strong results in Asia Pacific (excluding Japan) and a flat market in the U.S. helped to offset a relatively slow EMEA market. Notebook volume also was decent, the report said.
In Europe, the Middle East, and Africa, PC shipments posted a double-digit decline, as vendors continued to deplete Windows 8 stock in preparation for shipments of new products for the holiday season. Inventory in the sales channels decreased significantly by the end of the quarter, making way for more Windows 10 machines. But turmoil in parts of the region continued to inhibit demand and constrained shipments, the report said.
"Asia/Pacific (excluding Japan) – Volume was close to expectations this quarter. The market was softer compared to the previous year due to currency impact on the region and clearing of channel inventory as the main priority for many countries. Some big projects were postponed, including an education project in India. The commercial market was soft and was generally supported by government projects in many countries," the report said.
According to the report, the U.S. PC market continued to suffer from soft demand in both the consumer and commercial segments. The July launch of Windows 10 had an immediate suppressive impact as many consumers took advantage of the free upgrade. In commercial, IT budgets remained focused on other projects including mobile-readiness and digital transformation initiatives.
"Still, there is some hope in the fourth quarter," stated Linn Huang, IDC research director, Devices & Displays. "New designs running Windows 10 and powered by Intel's new Skylake processors are coming to market and may represent the most compelling reason we've had in years for consumers to upgrade their PCs. Whether this compulsion translates into actual sales remains to be seen."
