Computer Shipments Fall Again

Computer shipments again declined in the third quarter, and though the retreat wasn't as steep as in recent periods, the sector remained troubled, according to two research firms.

International Data Corp. said shipments fell 3.9% world-wide for the period ended in September, pressured by a 13% slide posted Apple Inc. IDC had projected shipments to fall 7.1%, the second straight quarter in which the slide was narrower than expected.

IDC researchers said the slowing fall in shipments might have less to do with recovering consumer demand and instead be linked to companies beefing up inventories as top players in the sector compete for market share amid the latest wave of consolidation.

Gartner Inc. estimated shipments fell 5.7% from the same period a year ago. The firm said PC makers still faced a number of challenges, including weak back-to-school demand and continuing low demand in the consumer market, notably in emerging markets.

"The PC is not a high priority device for the majority of consumers, so they do not feel the need to upgrade their PCs as often as they used to," said Mikako Kitagawa, principal analyst at Gartner. "Some may never decide to upgrade to a PC again."

The PC industry has been struggling with declining demand for several years because of issues that include a shift in consumer spending to smartphones. IDC's numbers might look better because its figures include laptops called Chromebooks that run operating software from Google Inc., while Gartner doesn't.

According to IDC, Lenovo Group Ltd. remained the top vendor in the world over HP Inc., although its market lead shrank to its smallest since the company climbed to the lead position in 2013. IDC said Lenovo held 21.2% of the market, while HP commanded 19.7%.

Gartner also had HP gaining ground on Lenovo, with Lenovo slipping 2.4% to 20.2% of market share as HP climbed 2.3% to hold 18.8%.

Apple was a leading drag on the global tally, according to both firms, with IDC saying that the company was preparing to "refresh" its personal computers.

In the U.S., Gartner said total shipments fell 0.3%. IDC said the U.S. market showed growth in the latest quarter, without offering a specific figure, but said it maintains a cautious outlook for the current quarter.

Both firms said HP Inc. remains the top vendor in the U.S.

Write to Ezequiel Minaya at [e-mail]

(END) Dow Jones Newswires

October 11, 2016 17:35 ET (21:35 GMT)

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