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FRAMINGHAM, MA – Worldwide second-quarter PC shipments totaled 66.1 million units, down 11.8% year-on-year.

The slow PC shipments were largely anticipated as a result of stronger year-ago shipments relating to end of support for Windows XP as well as channels reducing inventory ahead of the release of Windows 10. In addition, weaker or changing exchange rates for foreign currencies have effectively increased PC prices in many markets, thereby reducing purchasing power and also complicating investment planning.

"Although the second quarter decline in PC shipments was significant, and slightly more than expected, the overall trend fits with expectations," said Loren Loverde, vice president, Worldwide PC Trackers and Forecasting. "We continue to expect low to mid-single digit declines in volume during the second half of the year with volume stabilizing in future years. We're expecting the Windows 10 launch to go relatively well, though many users will opt for a free OS upgrade rather than buying a new PC. Competition from 2-in-1 devices and phones remains an issue, but the economic environment has had a larger impact lately, and that should stabilize or improve going forward."

"The US market was in line with forecasts, declining 3.3% from a year ago, after avoiding the global market declines over the past five quarters. Soft retail demand, short term weakness from inventory reductions, some cannibalization from competing devices, and low demand for large commercial refreshes are among the factors that reduced PC shipments," said Rajani Singh, Senior Research Analyst, Personal Computers. "Nevertheless, moving forward, we expect a healthy second half as inventory and purchase decisions pick up following the launch of Windows 10. Emerging product categories will remain a bright spot as attention shifts to convertibles and Chromebooks in the commercial as well as consumer segments."

With shipments totaling nearly 16.4 million PCs, the US market shrank 3.3% from the same quarter a year ago. Although most vendors saw volume decline, gains from Apple and Lenovo helped limit the overall decline. A tough year-on-year comparison contributed to a decline in desktop shipments, while portable PCs shipments continued to grow.

In EMEA, weakening demand and high inventory levels inhibited sell-in, driving results below expectations. Vendors continued to clean stock ahead of the back-to-school season and Windows 10 launch. Moreover, unfavorable exchange rates led to increasing prices and continued to affect demand both in the business and consumer spaces. The commercial market also faced a difficult year-on-year comparison with 2Q14, when the end of support for Windows XP boosted sales.

China was impacted by excess commercial notebook inventory from earlier quarters as the anti-corruption campaign continues to suppress commercial spending. Currency fluctuation also remained a key factor in many countries in the region, contributing to lower demand. Nevertheless, volume was close to expectations, reflecting a slight decline in growth from prior quarters.

Japan continued to see low growth as the weak Yen contributed to a difficult market. The Japanese PC market faced a particularly difficult comparison to year ago shipments that were boosted by the end of support for Windows XP and also changes to Japan's tax code. As the market responds to these shifts and managing inventory, Yamada Denki (one of Japan's major electronics stores) announced the closure of unprofitable stores in both urban and rural markets.

Lenovo held onto the top position with shipments of 13.4 million units. Volume was up 1% from the prior quarter, but down 7.5% from the prior year. The vendor continued to aggressively court expansion outside of Asia/Pacific, leading to share gains in the US and EMEA.

HP remained the number 2 vendor but saw shipments decline 10.4% from a year ago. Slowing business demand and inventory control of entry notebooks contributed to the dip. While most of the slowdown was from outside of the US, the vendor also saw its US volume contract nearly 7%.

Dell came in at number 3, shipping more than 9.5 million units and registering a year-over-year decline of -8.7%. Strong results in 2Q14 contributed to a poor year-over-year comparison. Stronger performance in Asia/Pacific and EMEA were offset by slower growth in the U.S.

Apple continued to outperform other vendors, with growth of 16.1% globally. The vendor has largely avoided the price competition affecting other players and may be benefitting from some of the uncertainty around the launch of Windows 10, along with refreshed products like the 12-inch MacBook and a relative concentration of shipments in the U.S.

Acer continued to see growth in Chromebooks with more models introduced. However, the vendor also struggled with the larger pullback in the market, particularly in EMEA where it had seen a rebound in mid-2014. The vendor ended the quarter with a volume of 4.33 million, a significant decline from the prior quarter and year ago volumes.

Asus was statistically tied with Acer for the number 5 position. Asus has also been affected by currency factors and inventory management, but strong growth in the US boosted overall results.

Top 5 Vendors, Worldwide PC Shipments (Preliminary), Q2

Vendor

2Q15 Shipments

2Q15 Market Share

2Q14 Shipments

2Q14 Market Share

2Q15/2Q14 Growth

1. Lenovo

13,444

20.3%

14,535

19.4%

-7.5%

2. HP

12,253

18.5%

13,675

18.2%

-10.4%

3. Dell

9,560

14.5%

10,466

14.0%

-8.7%

4. Apple

5,136

7.8%

4,423

5.9%

16.1%

5. Acer Group*

4,334

6.6%

5,932

7.9%

-26.9%

5. ASUS*

4,330

6.5%

4,693

6.3%

-7.7%

Others

17,082

25.8%

21,274

28.4%

-19.7%

Total

66,140

100.0%

74,998

100.0%

-11.8%

Shipments are in thousands of units. Source: IDC Worldwide Quarterly PC Tracker, July 9, 2015

Top 5 Vendors, US PC Shipments (Preliminary), Q2

Vendor

2Q15 Shipments

2Q15 Market Share

2Q14 Shipments

2Q14 Market Share

2Q15/2Q14 Growth

1. HP

4,259

26.0%

4,558

26.9%

-6.6%

2. Dell

3,920

23.9%

4,291

25.4%

-8.6%

3. Apple

2,205

13.5%

1,971

11.6%

11.9%

4. Lenovo

2,083

12.7%

1,914

11.3%

8.8%

5. Toshiba

934

5.7%

1,022

6.0%

-8.6%

Others

2,971

18.1%

3,169

18.7%

-6.3%

Total

16,372

100.0%

16,925

100.0%

-3.3%

Shipments are in thousands of units. Source: IDC Worldwide Quarterly PC Tracker, July 9, 2015

Table notes: Some IDC estimates prior to financial earnings reports. Shipments include shipments to distribution channels or end users. OEM sales are counted under the vendor/brand under which they are sold. PCs include desktops, portables, ultraslim notebooks, Chromebooks, and workstations and do not include handhelds, x86 Servers and tablets. Data for all vendors are reported for calendar periods.

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