Gartner Says PC Shipments Declined 9.6 Percent in Q1 of 2016

Worldwide PC shipments totaled 64.8 million units in the first quarter of 2016, a 9.6 percent decline from the first quarter of 2015, according to preliminary results by Gartner, Inc.

This was the sixth consecutive quarter of PC shipment declines, and the first time since 2007 that shipment volume fell below 65 million units.

"The deterioration of local currencies against the U.S. dollar continued to play a major role in PC shipment declines. Our early results also show there was an inventory buildup from holiday sales in the fourth quarter of 2015," said Mikako Kitagawa, principal analyst at Gartner.

"All major regions showed year-over-year shipment declines, with Latin America showing the steepest drop, where PC shipments declined 32.4 percent. The Latin American PC market was intensely impacted by Brazil, where the problematic economy and political instability adversely affected the market, Ms. Kitagawa said.

"The ongoing decline in U.S. PC shipments showed that the installed base is still shrinking, a factor that played across developed economies. Low oil prices drove economic contraction in Latin America and Russia, changing them from drivers of growth to market laggards."

PCs are not being adopted in new households as they were in the past, especially in emerging markets. In these markets, smartphones are the priority.

In the business segment, Gartner analysts said the Windows 10 refresh is expected to start toward the end of 2016.

Lenovo maintained the No. 1 position in worldwide PC shipments in the first quarter of 2016 despite a 7.2 percent decline in shipments.

Lenovo experienced a shipment decline in all regions except North America, where the company's PC units increased 14.6 percent from the same period last year.

In the last four quarters, Lenovo has showed double-digit shipment growth in the U.S., while the overall market has declined.