IDC: Traditional PC Market Grew 2.7 Percent in 2Q18

Preliminary results for the second quarter of 2018 (2Q18) showed shipments of traditional PCs totaled 62.3 million units, recording solid year-on-year growth of 2.7%, according to IDC. The results exceeded forecast of 0.3% growth and marks the strongest year-on-year growth rate in more than six years, when the first quarter of 2012 posted growth of 4.2%.

Although helped to some extent by a weak second quarter in 2017, the 2Q18 results decidedly bucked the trend from the previous three quarters, which had the market hovering slightly above or below flat growth. Once again business volume appeared to be the key driver with the top three companies reaping benefits across both desktop and notebook. Moreover, the market continued to grow for both premium as well as entry models.

Not surprisingly, the recovery is relegated to the highest echelon of the market as the top 5 companies all posted positive year-on-year growth, collectively growing over 7% and capturing nearly 78% of the overall market. Scale, be it in the form of purchasing power to reduce costs, obtain scarce components, or channel reach, continued to be the catalyst for industry consolidation. From a geographic perspective, all regions exceeded forecast, with both mature and emerging markets seeing good activity.

The traditional PC market registered its second consecutive quarter of year-on-year shipment growth in the USA with a total of 17.3 million units. In EMEA region market experienced modest growth, owing to a further wave of device renewals in the commercial space. In Asia/Pacific (excluding Japan) PC market came close to IDC's forecast, supported by positive results in India, where better than expected consumer demand and good traction in the commercial market drove shipments.

HP continued see results from its strong portfolio and execution. It extended its streak of consecutive quarters of year-on-year growth, further cementing its hold over all others in the market. HP grew 7.6% on the year with growth in all regions.

Lenovo whose majority stake in its joint venture with Fujitsu took effect in 2Q18, came off with a good start. The company rode the wave of healthy refresh momentum in Japan as well as recovering channel efforts in North America to grow 11.3% year on year. All regions showed year-on-year growth.

Dell, following a good 1Q18 result, posted strong growth of 9.0%, buoyed by strong performances in nearly all regions. Apple finished the quarter in the 4th position with nearly flat year-on-year growth. Acer held the 5th position, growing 1.3% year on year.