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article imageComputer market suffered dramatic, worst-case sales decline in Q2

By James Walker     Jul 10, 2015 in Business
The personal computer market experienced a substantial decline of nearly 12 percent in the last quarter, exceeding previous worst-case scenario estimates. Many experts consider the PC to be a dying breed but there may be reasons for this particular slump.
Bit-tech reports that industry analyst IDC revealed the figure yesterday. It is expected that the decline is now bottoming out ahead of an anticipated revival of sales later this year.
Although an 11.8 percent slide initially seems worrying, it is thought that many consumers may have held off buying new devices this quarter ahead of the launch of Microsoft's new operating system, Windows 10, in just a few weeks. IDC vice president Loren Loverde said that he expects the Windows 10 launch to go "relatively well" and should drive the market upwards again later this year.
There are still obstacles to overcome though. More than ever, traditional desktops and laptops are being hit by stiff competition from newer form-factors such as convertibles, tablets and phablets. Whereas a few years ago a laptop may have been the only feasible product for a business user on the move, now several different devices have the potential to fulfil that role.
The issue is further complicated by Microsoft's free Windows 10 upgrade offer for people running Windows 7 or 8.1. Loverde notes that "many users will opt for a free OS upgrade rather than buying a new PC."
In total, 66.1 million PCs (devices that aren't hand-held, servers or tablets) were shipped in the past three months. The 11.8 percent decline over last year's 75 million shipments reflects a boost in sales in the same period last year when people rushed to buy new machines as Windows XP became end-of-life.
Only Apple has seen any sales success this quarter. Its sales actually grew and by a substantial amount, rising 16.1 percent over the same period last year. This has boosted its total market share from 5.9 percent to 7.8 percent. Lenovo remains the world's largest personal computer manufacturer, followed by HP and Dell.
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