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Is The Dollar Hurting PC Sales?
Worldwide PC shipments dropped 8.3 percent in the fourth quarter which was the worst sales have been since 2008,, beancounters at Gartner Group said.
PC manufacturers shipped 75.7 million machines in the fourth quarter compared with about 82.6 million a year earlier. Sales sank 3.1 per cent in the US to 16.9 million in the quarter.
Gartner forecasts a fall of a percent in 2016 with the potential of a soft recovery later in the year.
Mikako Kitagawa, an analyst at Gartner said that the fourth quarter of 2015 marked the fifth consecutive quarter of worldwide PC shipment decline. Holiday sales did not boost the overall PC shipments, hinting at changes to consumers’ PC purchase behavior.
Lenovo retained its leadership of the PC market with 20 percent of the global market in the fourth quarter. Its shipments dropped 4.2 percent. HP was the No. 2 global PC maker, increased its market share slightly to almost 19 percent. The company maintained its top position in the U.S., with 27 percent of the market, despite a decline of 8.4 percent in fourth-quarter shipments. Del increased its global market share to 13.5 percent from 13.1 percent and ranked third.
IDC released similar figures saying that it was all the fault of the strong US dollar hampered overseas sales. It thinks that the decline in PC sales may slow in 2016, with IDC projecting a fall of 3.1 percent compared with 10 percent drop in 2015. Greater commercial adoption of Microsoft Windows 10 operating system may help stabilize sales.
Courtesy-Fud
Lenovo Soars
PC sales in China and high growth in smartphones sales helped boost Lenovo’s net profit for its fiscal fourth quarter by 90% year-over-year.
For the quarter ended March 31, Lenovo’s net profit was $127 million, the company said on Thursday. Revenue shattered records and was at $7.8 billion, growing 4% from the same period last year.
In Lenovo’s home market of China, the company had an operating margin of 4.9%, an increase of 8% year-over-year. The company also saw continued profitability in its mobile devices business, which makes up 9% of its overall sales. At the end of the quarter, Lenovo’s smartphone shipments were up 206% year-over-year.
Globally, PC shipments were down 13.9% year-over-year in the quarter, the market’s steepest decline since research firm IDC began tracking the market in 1994. Lenovo itself posted flat year-over-year PC shipment growth in the period.
Smartphone and tablet popularity have hurt PC sales, according to analysts. Computers running Microsoft’s Windows 8 have also failed to drum up consumer interest in the previous two quarters.
Lenovo, however, has managed to weather the slowdown by taking advantage of the Chinese PC market, where it has an over 30% market share. Close to half of the company’s revenue comes from the country, now the world’s largest PC market.
The company is now close to surpassing leading PC vendor HP for the top spot. The company had a 15.3% share of the market in this year’s first quarter, while HP had a 15.7% share.
But the Chinese PC maker also plans to focus more of its investment on tablets, smartphones and enterprise hardware, the company’s CEO Yang Yuanqing said in a statement. Earlier this year, Lenovo also reorganized its operations to sharpen the company’s branding and compete better in high-end products.
For the current fiscal year, Lenovo aims to ship 50 million smartphones, up from 30 million last year, Yang said Thursday in an earnings call. It aims to ship 10 million tablets, a five-fold increase from the previous fiscal year.
Most of Lenovo’s smartphone sales come from China, but the company has also begun selling handsets in the emerging markets of Russia, India, Indonesia, the Philippines and Vietnam. In addition, Lenovo is preparing to bring its smartphones to the U.S. and European markets, Yang said, without saying when.