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Gartner: PC Industry Suffering ‘5-Year Slump’

Things did not pick up for the PC industry in the second quarter of 2017.

According to new data from Gartner, PC vendors shipped 61.1 million units worldwide in the second quarter of 2017, a 4.3 percent decline from a year earlier. That marked the 11th straight quarter of declining shipments. In fact, PC shipments haven't been this low since 2007.

In a statement, Garner Principal Analyst Mikako Kitagawa said shortages of solid state drives, LCD panels, and other components caused vendors to increase PC prices, especially in the consumer market. The price increase "had a pronounced negative impact on PC demand in the second quarter of 2017," Kitagawa said.

"In the business segment, vendors could not increase the price too quickly, especially in large enterprises where the price is typically locked in based on the contract, which often run through the quarter or even the year," Kitagawa said. "In the consumer market, the price hike has a greater impact as buying habits are more sensitive to price increases. Many consumers are willing to postpone their purchases until the price pressure eases."

PC shipments Q2 2017

Breaking it down by vendor, HP, which has logged five consecutive quarters of growth, reclaimed the No. 1 position from Lenovo, which came in second for the quarter. Dell came in third followed by Apple, Asus, and Acer.


In the US, PC vendors shipped 14 million units during the period, a 5.7 percent decline from the year-ago quarter.

"The U.S. market declined due to weak consumer PC demand," Gartner wrote. "The business market has shown some consistent growth, while early indicators suggest that spending in the public sector was on track with normal seasonality as the second quarter is typically the peak PC procurement season."

Meanwhile, Gartner's data indicates that Chromebooks are faring better. Gartner does not include Chromebook shipments within the overall PC market, but said Chromebooks are "moderately impacting" the PC market. Worldwide Chromebook shipments grew 38 percent last year while the overall PC market declined 6 percent.

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