PC Recovery Continues as the Market Grows 3% in the Second Quarter

The traditional PC market has shown signs of recovery, with a growth of 3% in the second quarter of 2024, according to the International Data Corporation (IDC) Worldwide Quarterly Personal Computing Device Tracker. This marks the second consecutive quarter of growth, following seven consecutive quarters of decline. The market saw a total of 64.9 million units shipped worldwide, with a year-over-year growth of 3.0%.

While the overall market benefited from favorable comparisons to 2023, the weak results in China continued to hold the market back. However, excluding China, worldwide shipments grew more than 5% year over year. This growth can be attributed to the commercial refresh cycle and the hype around AI PCs.

Ryan Reith, group vice president with IDC’s Worldwide Device Trackers, emphasized that the PC market faces challenges in the near term due to maturity and headwinds. However, the two consecutive quarters of growth, combined with the buzz around AI PCs and the commercial refresh cycle, have given the market a much-needed boost.

The industry players have laid out their initial strategies for AI PCs, focusing primarily on the component side and the potential of the commercial market. While IDC believes the commercial market has the biggest short-term upside for AI in the PC industry, the consumer story has yet to be told in full. Apple is expected to drive the consumer message later this year with anticipated product launches, but Qualcomm, Intel, and AMD are also likely to make noise around both consumer and commercial AI PCs.

Jitesh Ubrani, research manager with IDC’s Worldwide Mobile Device Trackers, noted that promotional activity from consumer-oriented brands and channels has helped bolster the segment. The market has also moved past the rock-bottom pricing brought about by excess inventory last year, signifying growth in average selling prices due to richer configurations and reduced discounting.

The top 5 companies in terms of worldwide traditional PC shipments, market share, and year-over-year growth are:

1. Lenovo: 14.7 million units, 22.7% market share, 3.7% year-over-year growth
2. HP Inc.: 13.7 million units, 21.1% market share, 1.8% year-over-year growth
3. Dell Technologies: 10.1 million units, 15.5% market share, -2.4% year-over-year growth
4. Apple: 5.7 million units, 8.8% market share, 20.8% year-over-year growth
5. Acer Group: 4.4 million units, 6.8% market share, 13.7% year-over-year growth

The IDC Worldwide Quarterly Personal Computing Device Tracker gathers detailed market data in over 90 countries, providing accurate and timely market size, company share, and forecasts for hundreds of technology markets. The tracker is updated on a semiannual, quarterly, and monthly basis, and the results are delivered to clients in user-friendly Excel deliverables and online query tools.

IDC is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With over 1,300 analysts worldwide, IDC offers global, regional, and local expertise on technology, IT benchmarking and sourcing, and industry opportunities and trends in over 110 countries.

Historical Context:

The PC market has been experiencing a decline since 2019, with seven consecutive quarters of decline. This decline was largely attributed to the shift towards mobile devices and the rise of cloud computing. However, in the second quarter of 2024, the market showed signs of recovery, with a growth of 3% year-over-year. This growth can be attributed to the commercial refresh cycle and the hype around AI PCs.

Summary in Bullet Points:

• The traditional PC market grew 3% in the second quarter of 2024, marking the second consecutive quarter of growth. • The market saw a total of 64.9 million units shipped worldwide, with a year-over-year growth of 3.0%. • The growth was driven by the commercial refresh cycle and the hype around AI PCs, with the commercial market expected to have the biggest short-term upside for AI in the PC industry. • Apple is expected to drive the consumer message later this year with anticipated product launches, but Qualcomm, Intel, and AMD are also likely to make noise around both consumer and commercial AI PCs. • The top 5 companies in terms of worldwide traditional PC shipments, market share, and year-over-year growth are: + Lenovo: 14.7 million units, 22.7% market share, 3.7% year-over-year growth + HP Inc.: 13.7 million units, 21.1% market share, 1.8% year-over-year growth + Dell Technologies: 10.1 million units, 15.5% market share, -2.4% year-over-year growth + Apple: 5.7 million units, 8.8% market share, 20.8% year-over-year growth + Acer Group: 4.4 million units, 6.8% market share, 13.7% year-over-year growth • The IDC Worldwide Quarterly Personal Computing Device Tracker gathers detailed market data in over 90 countries, providing accurate and timely market size, company share, and forecasts for hundreds of technology markets. • IDC is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets.