Sales of Mobile Computers Lifted PC Sales in 2004 – Gartner

by Anton Shilov
01/24/2005 | 03:27 AM

Leading market research firm Gartner Inc. believes worldwide PC shipments in 2004 increased 11.8% from 2003, due to strong mobile PC sales, according to preliminary results of the company’s study.

Global PC Market Grows 11.8%

“Overall fourth quarter 2004 PC sales were in line with projections, despite some weakness in the US and EMEA consumer markets. Lower prices, better performance and wireless accessibility accelerated mobile sales,” said Charles Smulders, vice president of Gartner's Computing Platforms Worldwide Group.

Preliminary Worldwide PC Vendor Unit Shipment Estimates for 2004*
Company	2004 Shipments (in thousands)	2004 Market share	2003 Shipments (in thousands)	2003 Market share	2003-2004 Growth
Dell	30 995	16.4%	25 169	14.9%	23.1%
HP	27 567	14.6%	24 624	14.6%	12%
IBM	10 381	5.5%	8929	5.3%	16.3%
Fujitsu/FSC	7134	3.8%	6275	3.7%	13.7%
Acer	6399	3.4%	4937	2.9%	29.6%
Others	106.502	56.4%	99 125	58.6%	7.4%
Total	188 978	100%	169 058	100%	11.8%

Dell strengthened its lead in the worldwide vendor market with solid performance in all regions. Gartner claims that in the fourth quarter falling component prices allowed Dell to further lower prices and gain margin and market share.

HP’s PC shipments increased 12% in 2004, however the company did face some challenges at the end of the year. In the fourth quarter, HP’s growth rate was lower than the worldwide average due to slower sales in its key US and Europe, Middle East and Africa (EMEA) markets.

US PC Shipments Increased 8.3%

In the United States, PC shipments totaled 62.3 million units in 2004, an 8.3% increase from 2003. During the fourth quarter of 2004, the consumer market showed mixed results, with weaker than expected desktop growth but very solid notebook market growth.

Preliminary US PC Vendor Unit Shipment Estimates for 2004*
Company	2004 Shipments (in thousands)	2004 Market share	2003 Shipments (in thousands)	2003 Market share	2003-2004 Growth
Dell	18 878	30.3%	15 944	27.7%	18.4%
HP	11 453	18.4%	10 708	18.6%	7%
Gateway	3601	5.8%	3622	6.3%	-0.6%
IBM	2907	4.7%	2727	4.7%	6.6%
Apple	1965	3.2%	1693	2.9%	16.1%
Others	23 473	37.7%	22 822	39.7%	2.9%
Total	62 279	100%	57 515	100%	8.3%

“With Gateway's renewed focus on retail as well as the entrance of new notebook vendors, including Averatec, the battle for the retail shelf space became more intense,” Mr. Smulders said.

PC Market of EMEA Raises 14%

In the Europe, Middle East and African (EMEA) region, PC shipments totaled 61.7 million units in 2004, a 14 % increase from 2003. In the fourth quarter, shipments totaled 19.5 million units, an 11.7 % increase from the fourth quarter of 2003.

Preliminary EMEA PC Vendor Unit Shipment Estimates for 2004*
Company	2004 Shipments (in thousands)	2004 Market share	2003 Shipments (in thousands)	2003 Market share	2003-2004 Growth
HP	9926	16.1%	8871	16.4%	11.9%
Dell	6557	10.6%	4949	9.1%	32.5%
Acer	4358	7.1%	3419	6.3%	27.5%
Fujitsu/FSC	4215	6.8%	2870	5.3%	46.9%
IBM	3066	5%	2565	4.7%	19.5%
Others	33 640	54.5%	31 493	58.1%	6.8%
Total	61 762	100%	54 167	100%	14.0%

“2004 was a strong year showing double digit growth throughout the year. The market in Europe was strengthened by favourable exchange rates, strong mobile growth and by businesses finally replacing their PCs,” said Ranjit Atwal, analyst of Gartner’s Computer Platforms group in London.

In 2004, Dell and Fujitsu/Siemens gained most share, acquired in the mobile PC segment. Both increased their total market share by 1.5% compared to 2003. HP faced profitability challenges during 2004 and recorded the lowest growth among the top five vendors.

“In the fourth quarter of 2004, the EMEA market experienced a weaker than expected desk-based consumer market. However this was balanced out by strong demand for notebook PCs from business users. Prices remain under significant pressure. Many retailers are finding it difficult to sell at anything other than products at entry level prices, although average prices for commercial PCs remained stable despite the continued depreciation of the dollar versus the Euro,” Mr. Atwal added.

On a vendor basis, Acer produced the strongest market growth yet again, with 35.5% year on year growth in the fourth quarter. It posted strong growth in shipments of desktop PCs and extended its lead in the EMEA mobile PC market. HP market focus remained inconsistent with a poor quarter compared to its main rivals. Despite achieving strong growth in the consumer PC market, HP’s shipments of commercial PCs were flat year-on-year, leading to only single digit growth overall.

The EMEA PC market continues to move at two speeds: the combined growth of the top 10 PC vendors was closer to 20%, whilst vendors in local country markets recorded less than 5% growth.

In 2005, Gartner foresees growth in EMEA to slow down creating a very challenging environment, which will become even more competitive as IBM/Lenovo reveals its EMEA strategy.

Asia/Pacific, Latin America Markets Expand 13.1%, 24.7% Respectively

In the Asia/Pacific, shipments increased 13.1% in the fourth quarter of 2004. Both China and India showed strong. During the fourth quarter, many vendors typically stimulate demand with aggressive prices and accessory bundles.

Latin America showed the strongest fourth quarter growth, with PC shipments increasing 24.7%. Gartner analysts said PC ownership continues to be driven by increased awareness, cheaper and more available credit, lower prices and the appearance of new brands, such as Gateway, in Mexico.

*Gartner's shipments estimates include desktops, IA32 servers and notebooks.