Worldwide PC Shipments Expected To Fall By Double Digits In 2013, Most Severe Yearly Contraction Ever: IDC

With the rise of smartphones and tablets, personal computers, or PCs, are gradually fading away into obsolescence, and according to a new report released on Monday, mobile devices are likely to extend their lead even further as worldwide shipments of PCs are estimated to fall by double digits by the end of this year.

International Data Corporation, or IDC, said in its latest report that PC vendors are likely to ship 10.1 percent fewer units in 2013, an even bleaker number than the previous projection of a 9.7 percent annual drop. And, if the estimate turns out to be accurate, the drop will represent the worst yearly contraction on record for PCs.

“Perhaps the chief concern for future PC demand is a lack of reasons to replace an older system,” Jay Chou, a senior research analyst at IDC, said in a statement. “While IDC research finds that the PC still remains the primary computing device -- for example, PCs are used more hours per day than tablets or phones -- PC usage is nonetheless declining each year as more devices become available.”

Although total PC shipments are expected to decline by an additional 3.8 percent in 2014, volumes are projected to stabilize above 300 million units during the year. However, IDC does not foresee any significant recovery during the period.

According to IDC, the industry's efforts have not helped PC usage move significantly beyond work-related tasks to differentiate them from other devices. And, even in emerging markets -- a primary growth engine of the PC market -- shipments are projected to decline in 2014, and recover by only a few percentage points during the forecast period.

In India, overall PC shipments for the third quarter of this year stood at 3.24 million units, accounting for a yearly growth of 8.4 percent over the same period last year. However, third-quarter shipment figures also represented a quarterly slide of about 8.3 percent over the second quarter of 2013.

In terms of market share, HP (NYSE:HPQ) sustained its lead with a 32.3 percent market share, accounting for nearly a third of the Indian PC market in the third quarter. Lenovo (HKG:0992) secured second place with a 13.6 percent share while Dell (NASDAQ:DELL) took third spot with a market share of 11.8 percent.

“IDC expects Q4 to crumble because we anticipate seasonality and price hike to disrupt PC buying in the quarter ending December,” Manish Yadav, a market analyst at IDC, said.