PC Sales Q1 2017 - the first growth in 5 years - but only 0.6%

Yesterday the IDC posted their preliminary Worldwide Quarterly Personal Computing Device Tracker data for Q1 2017.

It shows the first market growth since Q1 of 2012 - albeit it was only 0.6%. While this reverses the trend that has seen PC sales drop over 30% in the last 5 years - In my opinion this is only a small respite.

HP regained the #1 spot and along with Lenovo and Dell remain the top three players with market shares of 21.8%, 20.4% and 15.9% respectively.  All three saw year over year growth ranging from 1.7% (Lenovo) to a very healthly 13.1% (HP).  

Apple and Acer round out the top five with nearly identical market shares of 7.0% and 6.8% and both also experienced growth in Q1.

As has been the trend for the last several years the "Others" category which includes makers like Toshiba, ASUS, Samsung and Microsoft, etc and represents just over 28% of the market saw an 11.4% decline in sales.  This decline offset most of the gains the top 5 experienced and why the overall numbers were effectively flat.

IDC also called out that consumer sales were somewhat soft, but made up for by enterprise sales and that Chromebooks continue their growth pattern.  

What I see as a trend moving forward is that the market is shifting with the low cost devices focusing more towards the Chromebook model, whereas the top 4 may be willing to forgo volume and focus on fewer models with higher price tags and margins.  

We saw that a little with the MacBook models, Surface Book and Studio from MS and the Elite line from HP.  And with MS positioning Touch, Ink, Pen and Windows Hello in Windows 10 - we'll see more of the 2-in-1 designs and all-in-one designs to support that.  

As I've stated in other posts, the question is - will users be willing to potentially spend additional $ / unit to get those new Windows 10 capabilities and features.

And while there have been some early forays at what I call the form factor extension model - so solutions for mobile devices that utilize the processing, networking and apps from those devices into a different form factor - it hasn't really taken off.  

Obviously the big question will be - will this trend continue or will we sales fall off in Q2 and Q3.  With Windows 10 sales slowing, this may be the case as users continue to defer PC upgrades.  

Considering that I am writing this post on a now nearly 8 year old PC running Windows 10 Fast Ring Insider build 16170 with no plans to replace - that may be the case.  




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