📺 Stream EntrepreneurTV for Free 📺

Why the PC Might Not See a Comeback The longest downturn in PC sales history might not be a bad thing.

By Stephanie Mlot

entrepreneur daily

This story originally appeared on PCMag

Shutterstock

Global personal computer shipments declined for the eighth consecutive quarter, marking the longest downturn in PC history.

Worldwide sales totaled 68.9 million units in the third quarter of 2016 -- a 5.7 percent drop from the same time last year, according to Gartner. The research firm cited manufacturers' "many challenges," including weak back-to-school demand and lessening appeal among the consumer market, especially in emerging areas.

"There are two fundamental issues that have impacted PC market results: the extension of the lifetime of the PC caused by the excess of consumer devices, and weak PC consumer demand in emerging markets," Mikako Kitagawa, principal Gartner analyst, said in a statement.

Most people own and use at least three different types of devices, she continued, adding that "the PC is not a high priority device for the majority of consumers, so they do not feel the need to upgrade … as often as they used to.

"Some may never decide to upgrade to a PC again," Kitagawa said.

For now, Lenovo is the top PC maker with 20.9 percent of the market, followed closely by HP with 20.4 percent; Dell pulls up the rear with 14.7 percent. But while Lenovo is in the midst of a six-quarter slump, HP and Dell have recorded shipment growth since Q2. Rounding out the top five are Asus (7.8 percent), Apple (7.2 percent) and Acer (6.7 percent). Gartner's data covers desktops, laptops and ultra-mobile (Microsoft Surface) PCs; Chromebooks and iPads were not considered.

And while mobile PCs -- notebooks, 2-in-1s, Windows tablets -- showed single-digit year-over-year growth, the overall results were marred by a decline in desktop shipments, according to Kitagawa.

In the U.S., PC shipments totaled 16.2 million units in the third quarter -- a 0.3 percent decline from the same period last year. "With so many PCs already in the consumer market, U.S. consumers do not feel the need to buy new PCs; many parents hand down old PCs to their kids," Kitagawa said.

The U.S. did, however, see an uptick in Q2 shipments, according to July reports, which tipped the country's growth at almost 5 percent, according to IDC; Gartner suggested a more conservative, but still positive, 1.4 percent.

Stephanie Mlot

Reporter at PCMag

Stephanie began as a PCMag reporter in May 2012. She moved to New York City from Frederick, Md., where she worked for four years as a multimedia reporter at the second-largest daily newspaper in Maryland. She interned at Baltimore magazine and graduated from Indiana University of Pennsylvania (in the town of Indiana, in the state of Pennsylvania) with a degree in journalism and mass communications.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Devices

Get This Powerful Refurbished Lenovo Mini Desktop for Just $180 Through April 30

Get more for your money and breeze through business tasks with a robust A-grade refurbished mini desktop.

Side Hustle

3 Secrets to Starting a Small Business Side Hustle That Gives Your Day Job a Run for Its Money, According to People Who Did Just That — and Made Millions

Almost anyone can start a side hustle — but only those ready to level up can use it to out-earn their 9-5s.

Business News

Elon Musk Reveals His Tactics for Building Successful Companies, Including Sleeping Under His Desk and 'Working Every Waking Hour'

Musk shared the secrets on a podcast with Nicolai Tangen, CEO of the $1.6 trillion Norges Bank.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Business News

James Clear Explains Why the 'Two Minute Rule' Is the Key to Long-Term Habit Building

The hardest step is usually the first one, he says. So make it short.

Business News

Ring Camera Owners Will Receive $5.6 Million in Payments After FTC-Amazon Settlement. Here's How Many Customers Are Eligible — And How They'll Get the Cash.

The payouts are a result of a June 2023 settlement with Amazon over privacy violation allegations against the camera company.