Global PC sales rose 20.7 per cent in Q2: Gartner

Global personal computer (PC) sales rose for the third consecutive quarter by 20.7 per cent to reach 82.9 million units in the second quarter of 2010, a 20.7 per cent increase from the second quarter of 2009, according to research firm Gartner.

The sales results for the Q2 beat Gartner's earlier market outlook, where the Stamford, Connecticut-based Gartner had had forecasted PC shipments to grow 19.3 per cent.

"The preliminary second quarter results indicate ongoing improvement of the PC market, and it marks the third consecutive quarter of double-digit growth on a year-over-year basis," said Mikako Kitagawa, principal analyst at Gartner.

"End-user spending grew approximately 13 percent in the second quarter. Average selling prices (ASPs) continue to decline, but at a much slower rate compared with the last two years."

Mini-notebook shipment growth still exceeded growth rates of the overall mobile PC market, but mini-notebook growth slowed to the low 20 per cent range compared with more than 70 per cent in the last two quarters. This slowdown indicates that mini-notebooks are entering a mature growth stage, said Kitagawa.

HP maintained its worldwide lead in PC shipments, but its growth rate was below the industry average as the company tried to protect margins in key regions. For example, HP did not participate in the aggressive pricing that was seen in Asia/Pacific. HP also underperformed in Europe, the Middle East and Africa (EMEA) with weak professional mobile growth.

Acer continued to record strong shipment growth worldwide, fueled by solid PC sales in EMEA and Asia/Pacific. Dell registered its second consecutive quarter of double-digit growth. Uptake in the professional PC market secured Dell's PC business, but the consumer market was still a challenge for the company, said Gartner.

Lenovo's PC shipments increased 47.2 per cent in the second quarter of 2010, but there were some concerns over profitability as Lenovo was aggressive on pricing in key regions.

ASUS had the strongest growth rate among the top five vendors worldwide in the second quarter, as its shipments increased 78.5 per cent. ASUS was able to mix its product lineup from mini-notebooks and focused on selling more standard mobile PCs for better margins.

In the US, PC shipments surpassed 17.9 million units in the second quarter of 2010, a 16 per cent increase from the same period last year. The professional PC market received a boost from the PC refresh cycle.

The professional PC market growth was driven by healthy seasonal demand from the public sector despite the budget deficit issues. Small and midsize businesses, as well as large enterprises, are expected to ramp up in the second half of 2010, said Gartner.

In the second quarter of 2010, PC shipments in EMEA totaled 24.1 million units, an increase of 21.6 percent from the second quarter last year.

''For the second consecutive quarter the EMEA PC market exhibited double-digit growth, signalling continued strength of the EMEA PC market despite uncertain economic conditions,'' said Ranjit Atwal, principal research analyst at Gartner.

Central Eastern Europe remained the fastest growing regions sequentially followed by Western Europe and the Middle East and Africa. The economic concerns of Portugal, Italy, Greece and Spain caused uncertainty in the EMEA PC market making the demand in the market more volatile.