EL SEGUNDO, CA – Despite challenging economic conditions, worldwide PC shipments in the first quarter rose in accordance with normal seasonal patterns, increasing by a double-digit percentage compared to the same period in 2007, according to iSuppli Corp.
 
Global PC unit shipments rose to 69.9 million units, up 12.1% year-over-year. Hewlett-Packard Co., Dell Inc. and Acer Inc. retained the top-three rankings with no change from the previous quarter.
 
“The first quarter of 2008 was better than hoped for, due to continued strong demand growth for mobile PCs,” said Matthew Wilkins, principal analyst for compute platforms research at iSuppli. “However, the financial markets are still adjusting to the effects of the sub-prime mortgage crisis in the United States, as are the consumers and businesses who have had their financial positions impacted.”
 
During the last five years, first-quarter PC shipments have grown by an average of 12% year-over-year, putting the beginning of 2008 on par with the norm, the research firm says.
 
Leading PC brand H-P started the year on a high note, boosting its first-quarter global PC shipments 23% compared to the same period last year, to reach 13.2 million units. This was the strongest percentage growth among the Top-10 PC makers and allowed the company to retain its No.-1 worldwide ranking with a market share of 18.9%.
 
Dell expanded its market share position half a percentage point sequentially, at 15.4%, with worldwide shipments of 10.8 million units. Company shipments were up 20% year-over-year.
 
Acer rounded out the Top-3 with unit shipments of 6.8 million units – a figure that includes shipments of recently acquired Gateway and Packard Bell – giving it a global market share of 9.7%.
 
Fellow Asian OEMs Lenovo and Toshiba rounded out the Top-5 rankings with market shares of 6.9% and 4.4% respectively.
 
As a result of its recent acquisitions, Acer’s worldwide PC market share now stands at less than a half a percentage point lower than the magical 10% mark, says iSuppli. Only two brands now hold worldwide PC market shares of greater than 10%: Dell and H-P.
 
Acer now has distanced itself from its once close rival in market-share terms: Lenovo. In the first quarter of 2007, the two companies were separated by a 0.4 percentage point of market share; however, in the first quarter of 2008, the delta grew to 2.8%.
 
Overall, the first quarter performance of the PC market was slightly better than expected. Nonetheless, many of the challenges identified in the first quarter still remain.
 
“iSuppli continues to see a higher value proposition in notebook PCs relative to desktops, and the growth in this segment bears witness to this,” Wilkins said.
 
iSuppli believes that despite challenging conditions, the outlook for the PC market in 2008 remains healthy.
 
“We now forecast global PC unit shipment growth in the range of 10% to 11% this year,” said Wilkins. “Exciting new developments in the area of low-cost PCs will help stimulate PC demand, along with bringing them to a wider audience.”
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