PC Shipments Continue to Slump

World-wide personal computer shipments dropped in the September quarter as PC makers didn't receive much of a boost from Microsoft Corp.'s new operating system, Windows 10, according to a pair of data trackers Thursday.

International Data Corp. said shipments fell a larger-than-anticipated 11% to 71 million units in the third quarter, while rival researcher Gartner Inc. said shipments totaled 73.7 million units, down 7.7% from a year ago.

Lenovo Group Ltd. stayed the top global PC vendor, while Hewlett-Packard Co. remained the top shipper in the U.S., according to both firms.

PC sales began slowing several years ago as consumers shifted spending to tablets and smartphones. Sales rebounded briefly in 2014, reflecting purchases by businesses as Microsoft phased out support for its aging Windows XP software.

But conditions have softened again in 2015, which some analysts have linked partly to customers waiting for Windows 10 and Skylake, the sixth generation of Intel's Core processor family that is expected to boost performance and reduce power consumption.

Both firms said Thursday that many users opted to upgrade existing PCs with the Windows launch rather than purchase new hardware. Gartner added that it expects the Windows 10 rollout to bolster holiday sales, while IDC said the new software and chips "may represent the most compelling reason we've had in years for consumers to upgrade their PCs."

"Whether this compulsion translates into actual sales remains to be seen," IDC researcher Linn Huang said.

Companies also struggled to limit price swings as shifting currency exchange rates inhibited PC shipments in the quarter, according to IDC. Gartner analyst Mikako Kitagawa said sharp appreciation of the U.S. dollar against local currencies made PCs pricier in the global market, leading to double-digit declines in Europe, the Middle East, Africa, Japan and Latin America.

World-wide, Lenovo was the top shipper, with at least 20% of the market, followed by H-P, Dell Inc., Apple Inc. and Acer Inc., according to both firms. Lenovo showed strong growth in the U.S., with market share there rising more than 20%, offsetting weakness in Europe and Japan, the firms said.

Overall in the U.S., both firms said, H-P held the top spot with about 28% of the market, followed by Dell, Apple and Lenovo. IDC had Toshiba Corp. fifth in the U.S., while Gartner had Asustek Computer Inc. in that spot.

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(END) Dow Jones Newswires

October 08, 2015 17:55 ET (21:55 GMT)

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