Worldwide PC Shipments Grew 2.8% in 2Q20 -- Gartner

Worldwide PC shipments totaled 64.8 million units in the second quarter of 2020 (2Q20), a 2.8% increase from the second quarter of 2019 (2Q19), according to preliminary results by Gartner. After a significant decline in the first quarter of the year (1Q20) due to COVID-19-related supply chain disruptions, the PC market returned to growth as vendors restocked their channels and mobile PC demand increased.

“The second quarter of 2020 represented a short-term recovery for the worldwide PC market, led by exceptionally strong growth in EMEA (Europe, the Middle East and Africa),” said Mikako Kitagawa, Research Director at Gartner. “After the PC supply chain was severely disrupted in early 2020 due to the COVID-19 pandemic, some of the growth this quarter was due to distributors and retail channels restocking their supplies back to near-normal levels.

“Additionally, mobile PC growth was particularly strong, driven by several factors including business continuity for remote working, online education and consumers’ entertainment needs. However, this uptick in mobile PC demand will not continue beyond 2020, as shipments were mainly boosted by short-term business needs due to the impact of the COVID-19 pandemic.”

Mikako Kitagawa, Gartner

In 2Q20, Lenovo and HP shared the number one position in the worldwide PC market, owing to HP’s strong growth in the quarter. They accounted for half of PC shipments in 2Q20, up from 46.6% in 2Q19 (see Table 1).

Lenovo maintained its No. 1 position in the worldwide PC market alongside HP, with 4.2% year over year (YoY) growth in worldwide shipments. This was the result of strong double-digit growth in EMEA and over 50% growth in mobile PC shipments.

After a significant decline in 1Q20 due to supply chain constraints, HP recorded strong YoY growth in 2Q20 as it recovered from those supply chain issues. HP showed particularly strong growth in EMEA and the U.S., brought on by healthy consumer demand for PCs.

Dell’s worldwide shipments declined slightly in 2Q20, representing its first YoY decline since the first quarter of 2016 (1Q16). Dell’s shipments grew in EMEA and Japan but declined in all other regions, with the steepest drop in Latin America (20%). In many regions, Dell’s mobile PCs showed double digit growth, which was offset by a significant decline in shipments of deskbased PCs.

Regional Overview
U.S. Market: The U.S. PC market grew 3.5% YoY, registering its fifth consecutive quarter of growth. Double-digit mobile PC growth was offset by a 44% decline in desk-based PCs.

“Strong mobile PC demand in the U.S. was driven by shelter in place rules enforced as a response to the COVID-19 outbreak,” said Kitagawa. “While some states eased restrictions during the second quarter of 2020, many businesses continued to prepare for a potential resurgence of the virus, resulting in strong demand for mobile PCs as a precautionary measure.”

EMEA Market: PC shipments in EMEA rose 20% in 2Q20, representing the strongest growth in this region in over 10 years. The exceptionally strong market demand was driven by the requirement for remote work and online education due to COVID-19, as well as a boom in consumer demand and increased vendor supply to the region as channels depleted during 1Q20 were restocked.

APAC Market: The Asia/Pacific (APAC) market declined 8.1% YoY in 2Q20. While the consumer PC market was strong, driven by both replacement and first-time purchases to address stay at home requirements, the business market was weak, reflecting demand challenges and budget constraints in certain verticals, such as government and education.