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Worldwide PC Shipments Experienced Flat Growth in the Third Quarter of 2018

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Worldwide PC shipments totalled 67.2 million units in the third quarter of 2018, a 0.1 percent increase from the third quarter of 2017, according to preliminary results by Gartner, Inc. The global market has shown modest stability for two consecutive quarters.

EMEA, Asia/Pacific and Japan experienced growth in the third quarter of 2018, while the U.S. and Latin America declined. Latin America showed the steepest decline of 8.5 percent after showing some stabilization earlier in 2018. However, these results are in line with Gartner’s expectations in view of CPU supply constraints for the rest of the year.

“The PC market continued to be driven by steady corporate PC demand, which was driven by Windows 10 PC hardware upgrades. We expect the Windows 10 upgrade cycle to continue through 2020 at which point the upgrade demand will diminish,” said Mikako Kitagawa, principal analyst at Gartner. “Despite the third quarter typically showing strong consumer PC sales due to the back-to-school season, weakness in consumer PC demand continued, offsetting the strong sales in the business market.”

“Although the third-quarter results did not show any material impact, the Intel CPU shortage could influence the PC market moving forward with price increases and changes to the vendor landscape. While this shortage will have some short-term impacts, Gartner does not see any lasting impact on overall PC demand. Current expectation is that the shortage will continue into 2019, but Intel will prioritize the high-end CPU as well as the CPUs for business PCs. In the meantime, AMD will pick up the part of the market where Intel cannot supply CPUs.”

Lenovo secured the top spot in the worldwide PC market with growth of 10.7 percent, driven by regained traction in the commercial market and its joint venture with Fujitsu (see Table 1). HP Inc. dropped to the second position, but recorded its fourth consecutive quarter of year-over-year shipment growth. HP showed strong desktop shipment growth, which indicated strong demand among corporate buyers.

Table 1
Preliminary Worldwide PC Vendor Unit Shipment Estimates for 3Q18 (Thousands of Units)

Company 3Q18 Shipments 3Q18 Market Share (%) 3Q17 Shipments 3Q17 Market Share (%) 3Q18-3Q17 Growth (%)
Lenovo* 15,889 23.6 14,357 21.4 10.7
HP Inc. 14,629 21.8 13,773 20.5 6.2
Dell 10,737 16.0 10,200 15.2 5.3
Apple 4,928 7.3 5,385 8.0 -8.5
Acer Group 4,074 6.1 4,322 6.4 -5.7
Asus 4,013 6.0 4,774 7.1 -15.9
Others 12,934 19.2 14,345 21.4 -9.8
Total 67,206 100.0 67,156 100.0 0.1

Notes: Data includes desk-based PCs, notebook PCs and ultramobile premiums (such as Microsoft Surface), but not Chromebooks or iPads. All data is estimated based on a preliminary study. Final estimates will be subject to change. The statistics are based on shipments selling into channels. Numbers may not add up to totals shown due to rounding.

*Lenovo’s results include Fujitsu’s units starting in 2Q18 to reflect the joint venture that closed in May 2018.

Source: Gartner (October 2018)

Dell experienced its 10th consecutive quarter of shipment growth, with growth of 5.3 percent in the third quarter of 2018. Dell did well in EMEA, Asia/Pacific and Japan, showing growth in both desktop and mobile PCs in these regions. However, Dell’s shipments declined in Latin America and the U.S. due to the weakness in the mobile PC market.

In the U.S. PC market, shipments declined 0.4 percent compared with the third quarter of 2017 (see Table 2). While desktop shipments were flat, mobile PC shipments slightly declined compared with a year ago. The major driver of the market continued to be business PC demand. “The third-quarter results confirmed the continuous shift to Chromebooks among U.S. K-12 educational institutions. While PCs are still the main device for higher education students, most students already have PCs before they head off to college, so there is limited demand for new PCs from back-to-school sales. Overall, Chromebooks experienced double-digit growth in the U.S., but Chromebooks are not included in the PC market statistics,” said Ms. Kitagawa.

HP Inc. continued to be the market leader in the U.S. with 30.7 percent of the market. Despite experiencing a decline of 0.8 percent, Dell remained in the No. 2 position. Dell may have been impacted by the weakness in mobile PC demand in the U.S. due to its specific target of the high-end consumer market, including gaming.

Table 2
Preliminary U.S. PC Vendor Unit Shipment Estimates for 3Q18 (Thousands of Units)

Company 3Q18 Shipments 3Q18 Market Share (%) 3Q17 Shipments 3Q17 Market Share (%) 3Q18-3Q17 Growth (%)
HP Inc. 4,531 30.7 4,377 29.5 3.5
Dell 3,831 25.9 3,860 26.0 -0.8
Lenovo* 2,276 15.4 1,863 12.6 22.2
Apple 2,022 13.7 2,189 14.8 -7.6
Microsoft 602 4.1 591 4.0 1.9
Others 1,510 10.2 1,949 13.1 -22.5
Total 14,771 100.0 14,828 100.0 -0.4

Notes: Data includes desk-based PCs, notebook PCs and ultramobile premiums (such as Microsoft Surface), but not Chromebooks or iPads. All data is estimated based on a preliminary study. Final estimates will be subject to change. The statistics are based on shipments selling into channels. Numbers may not add up to totals shown due to rounding.

*Lenovo’s results include Fujitsu’s units starting in 2Q18 to reflect the joint venture that closed in May 2018.

Source: Gartner (October 2018)

PC shipments in EMEA reached 18.9 million units in the third quarter of 2018, a 1.1 percent increase year over year. Consumer PC demand overall continued to decline, while sales of business PCs remained the one thing sustaining the market. However, demand driven by Windows 10 upgrades in Western Europe is expected to slow going forward.

PC shipments in Asia/Pacific totaled 24.3 million units, a 0.3 percent increase from the third quarter of 2017. PC demand from the commercial segment buoyed the market. Though the consumer segment continued to be challenging in terms of unit sales, demand remained at the midrange to premium price points, signaling purchases from consumers who look for features, functions and quality built for specific needs. Shipments in China grew 0.8 percent in the third quarter of 2018, showing a continued gradual recovery from a steady decline over the past few quarters.

These results are preliminary. Final statistics will be available soon to clients of Gartner’s PC Quarterly Statistics Worldwide by Region program. This program offers a comprehensive and timely picture of the worldwide PC market, allowing product planning, distribution, marketing and sales organizations to keep abreast of key issues and their future implications around the globe. 

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Enterprise News

Tata Tele business service hosts a Successful discussion with CXOs for resilience & business growth in Post COVID world

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Tata Tele Business Services (TTBS), hosted CXO Round Table Discussion with industry leaders on building a new mindset for business resilience and growth. The discussion centered around Respond, Reboot and Reinvent as key imperatives; with large Enterprises reinventing their business models as they continue to respond effectively to the aftershocks of the crisis.

 While the potential requirement for many organizations is to build digital competency, the larger goal is to be data-driven and leveraging the cloud capabilities. Moreover, witnessing variable cost structures, agile operations, and automation which could create stronger capabilities with digital presence and security.

According to an IDC report, ‘By 2022, 70% of all organizations will have accelerated use of digital technologies, transforming existing business processes to drive customer engagement, employee productivity, and business resiliency.’

Industry representatives such asUpkar Singh, Director IT, Fidelity Information Services India Ltd., Raj Neravathi – Head of Technology, Titan, Yogesh Kothari – Sr. Vice President, Quatrro Business Support Solutions shared their expertise upon business agility, examples from their professional career and how they are successfully driving the digital transformation journey for their organization.

Addressing the session, Mr. Shibhu Davies, Sales Head – North and East, Tata Communications Ltd. said, “There is a plethora of technology available in the market, understanding the most suitable one for a particular business is the key factor. To thrive in the next normal, companies must be data driven to make critical and timely decisions. While there is an uptick in the businesses investing in data and nimble technologies like cloud and AI, many are still struggling to maintain momentum. Businesses need to get out of cultural obstacles, address data privacy and governance challenges to enhance their degree of business transformation.” 

Elaborating further on increasing adoption of Cloud communication, Mr. Shibhu Davies explained, “Cloud Communication suite like Smartflo being offered by Tata Teleservices are inherently designed for a digital or hybrid environment and is well-equipped to deal with the growing overlap between digital technology and enterprise operations. Besides enhanced efficiency and operational flexibility, it offers more robust security to your business with a pre-configured unified threat management system.”

Mr. Upkar Singh, Director IT, Fidelity Information Services India Ltd said “Covid has created an unprecedented impact across all regions – organizations that are flexible both from technology and operational perspective have been able to RESPOND in time, REBOOT their functions and are now REINVENTING result oriented approach”

Mr. Raj Neravathi – Head of Technology, Titan said, “During times of catastrophes, leadership plays a very important role in adoption to change. Composure, calmness, honoring and supporting every internal and external stakeholder through thick and thin helps revive business and defines leadership by example.” 

Mr. Yogesh Kothari – Sr Vice President, Quatrro Business Support Solutions said, “Challenges that enterprises are facing in the current times is resistance to change. There is a lack of vision for creating a digital journey for the customer and technology know how for their business” 

Highlights of discussion: 

Challenges in Technology Adoption 

The key challenges faced by enterprises for adopting new technologies extend both towards the changing customer experience along with employee pushback. Merely purchasing and implementing a solution in response to a localized issue does not equate to technology adoption and agility. Organizations are considering two key points, recognizing and responding to the shifting trends in consumer behavior and avoiding the initiatives that target specific issues.

The post-covid world has led to unexpectedly increased customer readiness towards trying new channels for interacting with businesses. 

Organizations adopting to technology, lead to driving changes strategically through an ongoing process where being receptive to changing consumer trends helps in the formulation of effective roadmaps. These roadmaps can then be used to build better value propositions by leveraging the right technological advancements, leading to business growth and benefits.

Role of Leadership In Bringing Organizational Change

Leadership plays a very critical role while dealing with catastrophes. From healthcare solutions to virtual classrooms, from facilitating remote work and learning, from re-imagining online business models and digital revenue lines, to stepping up the cyber security, organizations are working on new challenges.

The pandemic has accelerated transformation multifariously for businesses in India. Organizations are re-imagining their business models, relooking at talent management strategies, and fast-tracking digitalization efforts to be more resilient to disruption. 

Organizations are simplifying and enhancing their IT landscape, architecting systems for integration, balancing operational and capital expenses using the cloud. Investments are being made towards intelligent systems that provide incremental learning abilities. 

Technology Investments for a Digital Future

Over the last couple of months, it has become increasingly evident that digital adoption is not negotiable. Having the right technology to power up digital strategies is fundamental in today’s business world. It is a business requirement without which organizations are not able to grow in a rapidly evolving market landscape.

A good business continuity solution that delivers digital workspaces to access critical applications, have accelerated the performance of organizational applications on remote connections. With right platform and solutions clubbed with excessive trainings, organizations have managed to continue with their operations without major loss in productivity or efficiency.

Digital technologies have caused a shift in customer expectations, resulting in a new kind of modern buyer. Today’s consumers are constantly connected and aware of what they can do with technology. Bringing the employees up to speed to cater to the new age customers has been one of the key form of investments for various organizations. 

Respond, Reboot and Reinvent – The New Mindset for Growth

Organizations have taken immediate actions focused on keeping people safe and essential business functions operating. This has been relatively marked with high effort and possibly chaotic activity.

Organizations are adopting to the wholistic approach, recognizing evolving customer demand, channels of information consumption, building continued incremental intelligence including technology that provides agility. Agile decision making and strategy setting by enterprises have outsized performance and established a lead over the competition that sustains long after the initial disruption. By reinventing themselves, organizations have learnt to conduct operational processes and workflows in new, repeatable, and scalable ways.

Key Takeaways

  • Gaining New perspectives, relooking at business models and embracing new models of harnessing technology have become business priorities.  
  • Reinvent on an ongoing basis to build an agile, adaptive & resilient enterprise for a sustainable future. 
  • Uninterrupted connectivity between all stakeholders, internally within employees and externally with customers and vendors across platforms and touch points is of critical importance.

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Networking

Bharti Airtel Announces 5G Ready Network

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In a major landmark, Bharti Airtel (“Airtel”) announced that it has become the country’s first telco to successfully demonstrate & orchestrate LIVE 5G service over a commercial network in Hyderabad city.

Airtel did this over its existing liberalised spectrum in the 1800 MHz band through the NSA (Non Stand Alone) network technology. Using a first of its kind, dynamic spectrum sharing, Airtel seamlessly operated 5G and 4G concurrently within the same spectrum block. This demonstration has emphatically validated the 5G readiness of Airtel’s network across all domains – Radio, Core and Transport. 

Airtel 5G is capable of delivering 10x speeds, 10x latency and 100x concurrency when compared to existing technologies. Specifically, in Hyderabad, users were able to download a full length movie in a matter of seconds on a 5G phone. This demonstration has underlined the company’s technology capabilities. The full impact of the 5G experience, however, will be available to our customers, when adequate spectrum is available and government approvals received.

Gopal Vittal, MD & CEO, Bharti Airtel said: “I am very proud of our engineers who have worked tirelessly to showcase this incredible capability in Tech City, Hyderabad today. Every one of our investments is future proofed as this game changing test in Hyderabad proves. With Airtel being the first operator to demonstrate this capability, we have shown again that we have always been the first in India to pioneer new technologies in our quest for empowering Indians everywhere.” 

“We believe India has the potential to become a global hub for 5G innovation. To make that happen we need the eco system to come together – applications, devices and network innovation. We are more than ready to do our bit.” added Gopal Vittal.                  

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Networking

Airtel Xstream Fiber Rolls Out Gigabit Wi-Fi Experience

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Bharti Airtel (“Airtel”) has kicked off the New Year with some exciting news for customers with the launch of hyper-fast Wi-Fi experience. 

Airtel Xstream Fiber customers can now enjoy 1 Gbps data speeds over Wi-Fi and no longer have to be constrained by a dedicated LAN cable. The Airtel Xstream Fiber Rs 3999 plan now comes with a complimentary 1 Gbps Wi-Fi router to go with unlimited data quota and massive bundled content.  

The highly advanced 4×4 Wi-Fi router, will enable seamless 1 Gbps Wi-Fi coverage across Homes and Small Offices. This will unlock a great experience for online gaming and animation and for work or study from home with large number of concurrently connected devices. Small Offices will be able to deploy multiple high speed connections for applications such as stock trading and online collaboration that requires reliable high speed connectivity with zero downtime.      

Says Vir Inder Nath, CEO – Homes, Bharti Airtel: “Reliable high speed connectivity is a lifeline in today’s digital first world and Airtel is proud to be at the forefront of India’s broadband revolution. A key ask from our customers was liberation from the LAN cable to enjoy the 1Gbps experience and we are delighted to make that happen.”        

Airtel Xstream Fiber’s 1 Gbps broadband plan at Rs 3999 also comes with a complimentary Airtel Xstream Box that offers 550 TV channels and OTT content from the Airtel Xstream app library that includes over 10,000 movies & shows aggregated across 7 OTT apps and 5 studios. It offers subscription to premier video streaming apps such as Amazon Prime Video and ZEE5, all accessible through the Airtel Xstream Box.

Airtel is India’s largest private sector broadband service provider with presence in over 150 cities. 

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