- IDC estimates global PC shipments fell 10.8% Y/Y in Q3 to nearly 71M units, a drop nearly as large as Q2's 11.8% and above a 9.2% projection. Gartner estimates shipments fell 7.7% to 73.7M.
- IDC: "Across many regions, the channel remained focused on clearing Windows 8 inventory before a more complete portfolio of models incorporating Windows 10 (NASDAQ:MSFT) and Intel (INTC) Skylake processors comes on the scene ... Though easing a bit, currency devaluation continued to inhibit PC shipments in the third quarter. While Windows 10 has generally received favorable reviews and raised consumer interest in PCs, many users opted to upgrade existing PCs rather than purchase new hardware."
- Nonetheless, IDC is "optimistic" about a demand pickup. "While PC shipments will be hampered in the short run by the availability of a free upgrade to Windows 10, the improved PC experience across user segments should drive longer-term demand for new PC hardware..."
- Likewise, Gartner expects "more stable market conditions" in 2016. It's also pleased the U.S. notebook and "premium ultramobile" segments saw positive growth. Various analysts have reported seeing signs of stabilizing PC demand.
- With tablet sales also under pressure, tablet cannibalization is less of an issue than before. The ability of older PCs to handle mainstream computing tasks without trouble (including on Windows 10) may be a bigger problem. Many in the industry are hoping 4K video and/or virtual reality will fuel upgrades.
- The market's four biggest players all grabbed share from smaller firms with less scale. IDC estimates market leader Lenovo's (OTCPK:LNVGY) unit share rose 130 bps Y/Y to 21%, #2 HP's (HPQ) 110 bps to 19.6%, and #3 Dell's 120 bps 14.3%.
- Apple (AAPL), aided by 1H15 MacBook refreshes, came in at #4 with a 7.5% share, up 60 bps (revenue share is likely closer to 15%). A 4K 21.5" iMac is reportedly launching next week.
- Acer (OTC:ASIYF) rounded out the top-5 with a 7% share, down 150 bps. Everyone else collectively fell 270 bps to 30.6%.
- Related tickers: AMD, NVDA, STX, WDC, HTCH