Global PC sales tank to lowest level since 2008

Global PC sales tank to lowest level since 2008

TABLET MARKET SLOWDOWN, ANDY HARGREAVES, GARTNER INC, LENOVO GROUP LTD, HEWLETT-PACKARD CO, ACER INC, BUSINESS NEWS

CNBC.com | Wednesday, 9 Oct 2013 | 11:19 PM ET

Global personal computer (PC) shipments tanked almost 9 percent on-year during the third quarter – a period of historically strong demand – to the lowest level in five years, according to a new report by Gartner. “The third quarter is often referred to as the ‘back-to-school’ quarter for PC sales, and sales this quarter dropped to their lowest volume since 2008,” said Mikako Kitagawa, principal analyst at technology research firm Gartner.PC shipments totaled 80.3 million units in the July-September period marking the sixth straight quarter of declining worldwide shipments.

The continued shift from PCs to tablets for daily content consumption is weighing on demand in both developed and emerging markets, the firm said.

“A greater availability of inexpensive Android tablets attracted first-time consumers in emerging markets, and as supplementary devices in mature markets,” said Kitagawa.

China’s Lenovo retained its crown as the top global PC maker with 17.6 percent market share in the third quarter, followed closely by Hewlett Packard (HP) with 17.1 percent market share.

“The upcoming holiday sales season will be a key battlefield for both companies,” Gartner said, noting that HP recorded its first positive shipment growth since the first quarter of 2012.

While Lenovo held on to the number one position, weakness in its home market dampened the company’s overall growth. Robust growth in North America and Europe, the Middle East and Africa, however, helped to offset the softness, the firm said.

Taiwan-based Acer and Asus, the world’s 5th and 6th largest PC makers, meanwhile, suffered a sharp fall in shipments of 22.6 and 22.5 percent on-year in the third quarter as both companies shift their focus away from PCs to other device markets.

Shares of Acer and Asus fell 0.5 and 1.5 percent, respectively, on Thursday, while shares of Lenovo gained 0.9 percent.

About bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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