Worldwide PC Market Declines for First Time Ever as Asian Markets Slow And US Slump Continues According to IDC
Japanese PC Market Grinds to a Halt as Economic Pressures Mount
FRAMINGHAM, Mass., July 19 /PRNewswire/ -- The worldwide PC market was
stagnant in the second quarter of 2001 with shipments declining by 2%.
According to IDC research, shipments of 29.8 million were down
7.2% sequentially as growth from Asian markets evaporated amid a continuing
US market slump.
The Japanese market, which managed 30% growth in 2000 in a moderate
economic climate, gave in to worsening economic conditions. Shipment growth
in the second quarter of 2001 was essentially flat, as consumers and
businesses postponed or cancelled purchases.
"The cumulative impact of a worsening economy, declining capital
investments, and reduced consumer spending is strongly affecting the Japanese
market," according to Loren Loverde, director of IDC's Worldwide Quarterly PC
Tracker. "Although the Japanese market resisted for a while, it now looks like
the PC market in Japan will be flat to negative into 2002."
Other Asian markets were also affected by economic and currency issues.
China and India, which have been the primary growth engines in the region,
slowed notably in the second quarter as consumer spending softened and
government technology spending declined. Growth in Australia and South Korea,
other large markets in the region, also declined notably.
Growth in Europe also declined although not as dramatically. The region
has been balancing softening consumer demand, with growing commercial
spending. These trends did not change dramatically in the second quarter,
although commercial spending growth was mild, and portable PC shipments slowed
significantly from the past several quarters bringing overall growth down.
PC shipments in the United States were just below forecasts with a
year-on-year decline of 8.1% and 1.3% sequentially in the second quarter of
2001, according to IDC. Given that average sequential growth in the second
quarter from 1994 to 2000 has been 4.1% (with the only sequential decline
during that period being 2000), the sequential decline from the first quarter
of 2001 was below the historical pattern, but not a disaster.
"Although shipment levels in the United States remain depressed, the
seasonal pattern appears to be holding, albeit at a lower level than last
year. Businesses are spending cautiously, and consumers have still not
emerged from their shells, but there is some hope that the worst is behind
us," said Roger Kay, director of Client Computing at IDC. "Toward the end of
the year, we expect a modest boost from the back-to-school and holiday
seasons, aided by a mild stimulus from Windows XP deployment, particularly in
the home."
Vendors
Dell's aggressive pricing and ability to react quickly to changing market
conditions allowed the market leader to further distance itself from
competitors. The company was alone among the top vendors in growing shipments
and market share as its rivals struggled to preserve volume and protect
margins. Dell far outpaced growth in all regions, including 10% growth in its
core U.S. market, and over 40% growth in the rapidly slowing Asian markets.
Compaq, HP, and Gateway had a particularly tough time in the U.S. facing
pricing pressure with continued low demand in the consumer space. IBM
likewise grew slower than the market in the U.S., despite a much larger
commercial focus. These three vendors chose not to match Dell's price
reductions and paid the price in market share.
Slowing consumer demand in Japan strongly affected Compaq and IBM's
year-on-year growth as both had large shipments of low-cost consumer systems
in Q2 2000. Sequentially, Compaq and IBM did well in Japan, and were fairly
close to market growth outside the U.S. and Japanese markets.
Compaq was able to significantly reduce overall inventory during the
quarter, which should improve the company's position going forward. HP
continued to do well in Europe but struggled with the slowing markets in Asia.
Fujitsu Siemens, with sales concentrated in Germany and Japan, struggled with
the economic conditions in these markets keeping shipments roughly flat
year-on-year, but declining sequentially.
Table 1
Top 5 Vendors, U.S. PC Shipments, Second Quarter 2001 (Preliminary)
(Thousands of Units)
Q2 2001 Q2 2001 Market Q2 2000 Market Growth
Rank Vendor Shipments Share Shipments Share 2001/2000
1 Dell 2,519 24.0% 2,293 20.1% 9.8%
2 Compaq 1,332 12.7% 1,693 14.8% -21.3%
3 Hewlett-Packard 991 9.4% 1,221 10.7% -18.8%
4 Gateway 798 7.6% 964 8.4% -17.2%
5 IBM 638 6.1% 713 6.2% -10.6%
Others 4,224 40.2% 4,542 39.8% -7.0%
All Vendors 10,501 100.0% 11,426 100.0% -8.1%
* Vendor shipments are branded shipments and exclude OEM sales for all
vendors and represent shipments to distribution channels or direct to
end users.
* Data for all vendors are reported for calendar periods.
Source: IDC, July 2001
Table 2
Top 5 Vendors, Worldwide PC Shipments, Second Quarter 2001 (Preliminary)
(Thousands of Units)
Q2 2001 Q2 2001 Market Q2 2000 Market Growth
Rank Vendor Shipments Share Shipments Share 2001/2000
1 Dell 3,979 13.4% 3,459 11.4% 15.0%
2 Compaq 3,590 12.1% 4,011 13.2% -10.5%
3 IBM 2,133 7.2% 2,260 7.4% -5.6%
4 Hewlett-Packard 2,065 6.9% 2,260 7.4% -8.6%
5 Fujitsu Siemens 1,375 4.6% 1,391 4.6% -1.1%
Others 16,641 55.9% 17,002 56.0% -2.1%
All Vendors 29,783 100.0% 30,383 100.0% -2.0%
* Vendor shipments are branded shipments and exclude OEM sales for all
vendors and represent shipments to distribution channels or direct to
end users.
* Data for all vendors are reported for calendar periods.
* Data for Fujitsu Siemens includes shipments for Fujitsu and Siemens.
Source: IDC, July 2001 |
