HP, Dell, Lenovo Recapture PC Growth Amid Windows 7 End-Of-Life

The three PC makers returned to growth in the U.S. market as the Intel CPU shortage slowed, but Apple shipments continued to fall, according to Gartner.

The three leading PC makers regained their footing in the U.S. PC market during the second quarter of the year as the Windows 7 end-of-life transition picked up steam and Intel's CPU shortage showed signs of slowing, according to research firm Gartner.

Following a first quarter that saw all five of the largest PC makers slide in U.S. shipments, HP Inc., Dell and Lenovo each returned to growth during Q2, Gartner reported. Apple, Microsoft and Acer all saw a decline in U.S. PC shipments during the quarter, and U.S. PC shipments were still down 0.4 percent overall from the same period a year earlier.

[Related: The Top 7 Things To Know About Windows 7 End-Of-Life]

Globally, PC shipments rose 1.5 percent during the second quarter, year-over-year, according to Gartner.

Microsoft's end of support date for Windows 7 is set for Jan. 14, 2020, and Q2 PC growth "was driven by demand from the Windows 10 refresh in the business market," said Gartner analyst Mikako Kitagawa in a news release. Desktop PC sales saw strong growth, offsetting a drop in mobile PC shipments, she said.

In addition, "there are signs that the Intel CPU shortage is easing, which has been an ongoing impact to the market for the past 18 months," Kitagawa said.

In the U.S., market leaders HP Inc. and Dell saw modest growth in quarterly shipments of 1 percent and 0.5 percent, respectively, according to Gartner. Lenovo regained its previous strong momentum in the U.S. market by jumping 12.2 percent in second-quarter PC shipments.

Recent product introductions by Lenovo have included a new notebook brand, the ThinkBook, which combines many business-friendly elements of the ThinkPad with a sleeker design and a price level meant to appeal to SMBs. "It’s a game changer in the SMB market," said Pat Lonning, director of strategic partnerships and vendor relations at Virginia Beach, Va.-based Electronic Systems Inc.

Even with the brighter picture for PCs, Kitagawa warned that the U.S.-China trade war and potential for tariffs on PCs manufactured in China "adds uncertainty to the near-term outlook for PC demand."

“While the U.S.-China trade war did not impact the PC market in the second quarter of 2019, the next phase of tariffs could have significant impact,” Kitagawa said. Laptops and tablets--the majority of which are manufactured in China--may see price hikes in the U.S. “if the punitive tariffs are imposed and vendors do not take quick action to respond,” she said.

According to a recent Nikkei report, HP and Dell have plans to shift up to 30 percent of their production of notebooks to locations outside China in response to the trade war. HP and Dell did not specifically respond to the Nikkei report’s claims in responses sent to CRN last week.

Here are Gartner's U.S. PC shipments and market-share figures for the second quarter of 2019:

• HP Inc.: Shipments up 1 percent; market share of 29.8 percent (29.4 percent a year ago)
• Dell: Shipments up 0.5 percent; market share of 28.4 percent (28.2 percent a year ago)
• Lenovo: Shipments up 12.2 percent; market share of 17.3 percent (15.4 percent a year ago)
• Apple: Shipments down 5.6 percent; market share of 10.9 percent (11.5 percent a year ago)
• Microsoft: Shipments down 7.5 percent; market share of 3.6 percent (3.9 percent a year ago)
• Acer: Shipments down 13.1 percent; market share of 2.9 percent (3.3 percent a year ago)

Globally, the rankings differed during the first quarter, with Lenovo keeping the top spot—with 25 percent market share—followed by HP Inc. (22.2 percent), Dell (16.9 percent) and Apple (5.9 percent).