IDC: PC market sees strong Q3 from notebook sales boost

By Colleen Taylor, Contributing Editor -- 10/18/2007

Boosted in large part by strong back-to-school sales, worldwide PC shipments grew by 15.5 percent during Q3, according to a report released Wednesday by market research firm IDC.

Most regions continued to grow close to the pace of recent quarters, but the Europe/Middle East/Africa (EMEA) region saw a particularly significant increase in portable PC demand due in large part to a stronger Euro. In fact, IDC said, the surging popularity of portable PCs caused the PC market to see Q3 global growth at rates not seen since the end of 2005.

The strong sales are expected to continue in the coming months and even years, IDC said. "The appeal of portable PCs in all regions continues to propel the PC market at a remarkable pace and sets the stage for a very strong Q4,"  Loren Loverde, director of IDC's worldwide quarterly PC tracker, said in a statement. "Falling costs, aggressive vendor competition, and rising commercial spending in all regions, along with relatively low penetration and rising consumer income in emerging markets, will sustain high growth over the next couple years."



Source: IDC

The outlook is not completely without hindrances, however. "There is some risk that component supplies – particularly for batteries and displays – could limit volume or raise prices," Bob O'Donnell, IDC's VP of clients and displays, said in a statement. "However, suppliers are working to increase production and PC vendors may be able to adapt their configuration lineup to maximize volume. If components are in short supply, smaller vendors are likely to have a harder time adapting."

On a company-by-company basis, Hewlett Packard Co. had a second consecutive quarter of better than 30 percent year-on-year growth, IDC said. Additionally, HP's market share improved by roughly 2.5 percent from a year ago in both the United States and international markets. Dell Inc., which in the past year has welcomed back its founder Michael Dell to the role of CEO in an effort to boost performance, indeed improved significantly in Q3 with growth in both the EMEA and Asia/Pacific markets, with less dramatic improvements in the United States and Japan, IDC said.


Source: IDC

Lenovo Group Ltd. saw nearly 23 percent growth in Q3 for a second consecutive quarter, with solid growth across regions, IDC said.  Acer Inc. also continued its "rapid gains," IDC reported, with a boost in worldwide growth to nearly 60 percent.    Toshiba Corp. saw growth accelerate in EMEA and Asia/Pacific while growth in the United States slowed from 47 percent in the second quarter. Gateway Inc. saw a nearly eight percent boost in international shipments, but a 14 percent drop in volume in the United States. 

For commentary on this story, see “Acer’s ‘Gateway’ to global PC supply chain.”

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