PC shipments perked up in the second quarter of the year. While this is the first increase in six years, no-one is talking about a revival yet. It could be what people in the finance industry call a dead cat bounce.
Both Gartner and IDC published sales estimates showing a small increase in sales. Gartner put the increase at 1.4 percent. IDC has a more bullish 2.7 percent increase.
It’s worth noting here the two market research companies are not measuring quite the same thing.
Also, a shipment is not a sale. It is a computer that has moved from a factory to a retailer’s warehouse. But PC supply chains are tightly managed so, in general, shipments closely mirror actual sales.
PC Shipments joy not evenly spread
IDC’s more bullish estimate includes sales of PC-like devices such as Chromebooks, but doesn’t not include Windows tablets such as Microsoft’s Surface Go. Gartner counts a Windows tablet with an attached keyboard as a PC. Its number does not include other tablets nor does it include Chromebooks.
Both IDC and Gartner say that at least some of the increase is down to business computers running Windows 10.
Mikako Kitagawa, a principal analyst at Gartner says: “PC shipment growth in the second quarter of 2018 was driven by demand in the business market, which was offset by declining shipments in the consumer segment.
“In the consumer space, the fundamental market structure, due to changes on PC user behaviour, still remains, and continues to impact market growth. Consumers are using their smartphones for even more daily tasks, such as checking social media, calendaring, banking and shopping, which is reducing the need for a consumer PC.”
All of which has been true since 2012.
Recovery or dead cat bounce
Kitagawa expects business sales to weaken again when the Windows 10 replacement cycle ends.
IDC says the top five PC makers all saw sales growth and collectively they now account for a larger share of the market. This year they make up 78 percent of all sales.
Gartner and IDC can’t decide whether the top PC company is Lenovo or HP. Gartner has Lenovo a nose ahead shipping 12,000 more units than HP. IDC has HP in front by around a million machines. Remember the two companies are measuring different things.
Both put Dell, Apple and Acer in that order behind the leaders. IDC and Gartner also agree that Apple experienced the least growth during the quarter. New MacBook Pro models this week could change that.
Neither of the market research companies is prepared to say if the PC shipments uptick is the start of something new, a one-off before the slide resumes or an indication that shipments have bottomed out. The only certainty is that these top five PC brands are likely to strengthen their hands against the rest of the market. PC manufacturing is a game when volume matters.