July 2018 - the State of the PC market

So here we are a little past Mid year in 2018 - so here's a quick check in on the PC Market.

According to IDC - the industry saw the first sales increase in over 6 years of 2.7% to 62.2M units sold worldwide vs 60.6M in 2017.

The top five OEMs (HP, Lenovo, Dell, Apple and Asus) control over 77% of that market as the "Others" category continues to consolidate - showing an 11.4% drop in sales.   

MS does not report Surface sale unit numbers - but based on their $1.094B revenue number and an estimated average selling price of $1000 - you can guestimate unit sales around 1.1M or around 1.7% market share.  Surface is weird as well since depending on the model may be considered a tablet or a PC and therefore counted differently.

Total PC sales for H1 of 2018 are around 122- 123M units - so really about the same as last year.   So unless there are some earth shattering new releases that drive significant demand or some major upgrade cycles - 2018 should come in some where around the 250 - 255M unit range.

According to NetMarketShare on the operating system side - Windows still holds the lion's share of all desktop OS at 88.4% - followed by MacOS @ 8.9%, Linux @ 2.23% and ChromeOS @ 0.3%.  And so even though Chromebook sales volumes are increasing - it will be some time before they even reach 1% market share.

Within the Windows world - Windows 7 still holds over an 11% point lead at 43.3% over Windows 10 @ 32.0% with Windows 8.1 and Windows XP both around 5%

Also MS has yet to reach 700M PCs on Windows 10.  This is long short of the 1B PCs they projected back in 2015 to be at by the end 2017.  

On the browser side - Chrome is @ 61.2%, followed by Internet Explorer @ 12.1% and Firefox @ 11.2%.   Edge is at a lowly 4.1% just ahead of Safari @ 3.7%.   What this means is that only 1 in 8 Windows 10 users use Edge vs 1 in 3 Mac users using Safari.

Bottom line is that PC sales are effectively flat for 2018 and will probably stay that way.  MS is not really being challenged from an OS perspective - other than their own inability to get people to upgrade.  So the only thing that might change the needle there is the pace of PC refresh.

And even for those folks that do upgrade - most are not using Edge and installing Chrome instead.  




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