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Time’s up PCs! Consumers Prefer Smartphones Over You

The desktop market has been on a downward spiral for many years now. 

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Worldwide personal computer (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 a Gartner report.

This was the sixth consecutive quarter decline in PC shipment. This is also the first time since 2007 that PC shipment volume fell bellow 65 million units.

The deterioration of local currencies against the US 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.
Mikako Kitagawa, Principal Analyst, Gartner

All major regions showed year-over-year shipment declines, with Latin America showing the steepest drop, where PC shipments declined 32.4 percent.

Explaining the reasons for the decline in PC shipments in the US, she said, “The ongoing decline in US PC shipments showed that the installed base is still shrinking, a factor that played across developed economies.”

Chinese technology major Lenovo has maintained the top position in worldwide PC shipments in the first quarter of 2016 despite a 7.2 percent decline in shipments.

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

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