--PC trackers find contracting shipments of PCs in second
quarter
--Tablets and smartphones continue to distract consumers
--Concerns arise about Windows 8 launch and whether consumers
are holding off purchases
(Updates throughout with IDC data.)
By Ian Sherr
SAN FRANCISCO--Global growth stalled for personal computer
shipments in the second quarter, two research firms said, despite
heavy marketing by Intel Corp. (INTC) and its customers to push a
new breed of sleek notebook computers called Ultrabooks.
Industry researchers Gartner Inc. (IT) and International Data
Corp. said shipments of personal computers declined 0.1%, with the
contraction numbering in hundreds of thousands of units. The
results were the seventh consecutive quarter of flat or
single-digit growth, Gartner added, underscoring weak demand amid
economic uncertainties.
IDC said the quarter underperformed its expectation of 2.2%
growth. Gartner did not have an official forecast for the second
quarter, but expects PC shipments to rise 2% this year, with
stronger sales in the second half.
Headwinds facing the PC market continue to include competition
from Apple Inc.'s (AAPL) iPad and other tablets, which for some
consumers have become primary devices for browsing the Web.
"Consumers are less interested in spending on PCs as there are
other technology product and services, such as the latest
smartphones and media tablets that they are purchasing," Mikako
Kitagawa, an analyst at Gartner, said in a statement, noting that
this trend is particularly playing out in saturated markets, such
as the U.S.
Intel, which had previously backed low-end portables called
netbooks, for the past year has tried to spur demand with
Ultrabooks--higher-end laptops that have similarities to Apple's
thin MacBook Air. The chip maker, among other things, has
established a $300 million fund to promote Ultrabooks.
But pricing--often $900 or higher--remains an obstacle despite
Intel's long-term goal of hitting mainstream price points. And IDC
said some consumers who may have been attracted to Ultrabooks may
be waiting for versions that come with Windows 8, a version of
Microsoft Corp.'s (MSFT) popular operating system not expected
until the fall.
Ultrabooks, added Ms. Kitagawa of Gartner, could change dynamics
of the market, but not yet. "This segment is still in an early
adopter's stage," she said.
Hewlett-Packard Co. (HPQ) remained the top PC maker by volume,
with a 14.9% share of computers shipped by Gartner's numbers, or
15.5% by IDC's. The Palo Alto, Calif., company's reign was dented
by percent declines in the double-digits both internationally and
in its home country, where, however, it still represents a quarter
of the market.
Lenovo Group Ltd. (0992.HK, LNVGY) continued its quest to become
the top PC maker this year, growing its world-wide share at the
expense of both H-P and Dell Inc. (DELL), to become the
second-largest computer maker with 14.7% of the market by Gartner's
data, or 14.9% by IDC's.
Acer Inc. (2353.TW) and Dell rounded out the top four, though
the two firms disagreed about which one resided in which place.
Acer was one of the first companies to release Ultrabooks, Gartner
noted, and will likely be the first vendor to lower prices.
Meanwhile, Dell has been focused on increasing the average
prices of its computers sold, reducing market share as a result.
Gartner said that despite the strategy, it needs to "maintain a
certain level of market share" in order to keep its supply chain
efficient by leveraging economies of scale to keep parts prices
low.
Apple, maker of the popular iPhone and iPad tablet computers
that have contributed to the PC market's woes, ranked third in U.S.
shipments, growing 4% to represent 12% of overall sales, Gartner
said.
Gartner warned that U.S. government and education budgets
continue to be constrained, something that H-P and Dell both noted
in their conference calls recently.
Europe, battered by the euro-zone crisis, has also been a sore
spot of weak demand, particularly in western and southern regions.
Gartner said retailers have been taking a "risk-adverse approach,"
but noted that distributors may be building inventory that could
hinder future growth, particularly when Microsoft releases Windows
8. IDC was slightly more positive about the region, saying
inventory in distribution channels appeared to have returned to
healthier levels, with demand even appearing to grow.
IDC put second-quarter PC shipments at 86.7 million, while
Gartner put the total at 87.4 million.
-Nathalie Tadena contributed to this article.
Write to Ian Sherr at ian.sherr@dowjones.com