Apple keeps defying odds as PC sales decline for four years in a row | tech | Hindustan Times
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Apple keeps defying odds as PC sales decline for four years in a row

Total PC shipments have been declining, industrywide, for the last four years, as consumers are waiting longer to buy new models and many are turning to smartphones or tablets. While other major computer-makers saw shipments fall in 2015, Apple increased the number of Macs it shipped worldwide last year, according to estimates from two research firms on Tuesday.

tech Updated: Jan 13, 2016 12:06 IST
While other major computer-makers saw shipments fall in 2015, Apple increased the number of Macs it shipped worldwide last year.
While other major computer-makers saw shipments fall in 2015, Apple increased the number of Macs it shipped worldwide last year.(Apple)

Total PC shipments have been declining, industrywide, for the last four years, as consumers are waiting longer to buy new models and many are turning to smartphones or tablets. Even last summer’s release of Windows 10 — Microsoft’s new operating software — failed to boost overall sales.

While other major computer-makers saw shipments fall in 2015, Apple increased the number of Macs it shipped worldwide last year, according to estimates from two research firms on Tuesday.

Stats:

Manufacturers shipped a total of 288.7 million PCs last year, down by 8% from 2014, according to researchers at Gartner. Analysts at International Data Corp, using different methodology, put the total at 276 million and the decline at 10.4%.

Defying the odds:

Apple, however, saw an increase of roughly 6%, according to both firms. While other major PC-makers have seen ups and downs, Apple alone has enjoyed gains in each of the last three years.

Big manufacturers like Lenovo, HP and Dell still sell far more computers than Apple. Industry leader Lenovo shipped 57 million PCs last year, while estimates for Apple are just under 21 million.

Still, analysts say Apple benefits from its reputation as a premium brand in US and Europe. It’s also been making inroads in Asia. Gartner analyst Mikako Kitagawa noted that Apple has been opening retail stores in China, which is now the second-largest PC market in the world.

The root cause

Experts trace the PC industry’s slump to the introduction of more powerful smartphones and tablets in recent years. Even Apple saw a slight decline in Mac shipments in 2012, when some buyers opted for iPads instead. The slump has also hurt chip manufacturers like Intel, and other companies that make PC components, while forcing software makers to re-design their products for smaller, mobile devices.

Nearly every major PC maker now makes tablets, as well. Lenovo has also moved into smartphones, buying the Motorola phone business from Google in 2014. But tablet and smartphone sales are also slowing, as more people already own them.

Industry hopes are now turning to new “hybrid” computers, or tablets with detachable keyboards, which are touted as combining the best features of PCs and tablets. Sales of those devices are still small, but growing. IDC analyst Jay Chou said his firm expects industry-wide shipments of traditional PCs will fall another 3% this year, but the addition of hybrids could turn that total into an overall increase of 1%.

Analysts also blamed last year’s weak PC numbers on economic weakness in Asia and the end of a 2014 buying surge that followed Microsoft’s decision to end support for Windows XP, an older version of its widely used operating software. An expected boost from the new Windows 10 was undercut by Microsoft’s decision to give free software upgrades to owners of older machines.

The PC industry had another down year in 2015, as global shipments fell for the fourth consecutive year, despite new models and the release of Microsoft’s Windows 10 operating system.

Even holiday sales had a limited impact on shipments during the final months of 2015. Analysts at the Gartner research firm estimate manufacturers shipped 288.7 million personal computers in 2015, down 8% from 2014.

Gartner says Apple was the only major computer maker to see an increase in global shipments last year, while Lenovo, HP, Dell and Asus all saw declines. Experts say PC sales are still being hurt by the popularity of smartphones and tablets. And the expected boost from Windows 10 was undercut by Microsoft’s decision to give free software upgrades to users of its previous operating system.