PC Shipments Make Largest Single-Quarter Drop
PC shipments had the largest single-quarter decline ever in the first quarter of 2013, according the International Data Corp. (IDC).
The Framingham-based data tracking firm reported 76.3 million units in worldwide total shipments, down 13.9 percent over the same period last year. A drop of 7.7 percent had been expected.
In the U.S., shipments dropped 12.7 percent with quarterly shipments reaching their lowest levels — 14.2 million — since 2006. U.S. shipments have declined for 10 of the last 11 quarters.
IDC said it was the fourth consecutive month that worldwide shipments declined. The firm, which has tracked PC shipments since 1994, reported that mini notebook shipments took a significant part of the market, while tablets and smartphones continued to divert consumer spending.
The report said the industry is struggling to innovate to differentiate PCs from other products and that efforts by the PC industry to offer touch capabilities and ultra-slim systems have been held back by price and component supply and a weak reception for the Window 8 operating system.
“At this point, unfortunately, it seems clear that the Windows 8 launch not only failed to provide a positive boost to the PC market, but appears to have slowed the market," said Bob O’Donnell, IDC program vice president of clients and displays. “.... The radical changes to the (user interface), removal of the familiar Start button, and the costs associated with touch have made PCs a less attractive alternative to dedicated tablets and other competitive devices. Microsoft will have to make some very tough decisions moving forward if it wants to help reinvigorate the PC market."
IDC said slow demand is also evident in the ongoing restructuring of Hewlett-Packard and Dell.
“Although the reduction in shipments was not a surprise, the magnitude of the contraction is both surprising and worrisome,” said David Daoud, IDC research director, of personal computing. “The industry is going through a critical crossroads, and strategic choices will have to be made as to how to compete with the proliferation of alternative devices and remain relevant to the consumer.”
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