HP, Dell and Acer all down on PC sales

The worldwide PC market shrank by 3.2 per cent in the first quarter of 2011 compared with 2010 as businesses remained cautious on investment in computer hardware, according to figures from research group IDC.

The firm had expected to see a modest 1.5 per cent growth, but a number of factors combined to generate the first negative figures since the recession ended, with consumer spending on PCs also waning.

This is no doubt due to the rapid growth of the tablet market, kickstarted by the Apple iPad, which has led to a raft of similar products from the likes of Samsung, Motorola and HTC. IDC itself has predicted that in Europe alone up to 22 million tablets will be sold during 2011.

The research group also said that a sudden rise in fuel and commodity prices, civil unrest in the Middle East and the recent earthquake and tsunami in Japan had all impacted sales.

Jay Chou, senior research analyst with IDC's Worldwide Quarterly PC Tracker division, said that, while these short-term events had hindered growth, PC vendors face tough market conditions as tablets dominate.

"Long-term success will depend on hardware manufacturers being able to articulate a message beyond simple hardware specifications. 'Good enough computing' has become a firm reality, exemplified by notebooks and now tablets," he said.

"Macro-economic forces can explain some of the ebb and flow of the PC business, but the real question PC vendors have to think hard about is how to enable a compelling user experience that can justify spending on the added horsepower."

Acer was the biggest loser over the year, its market share falling from 12.9 to 11.2 per cent as shipments dropped by around 1.7 million, while Lenovo was the biggest winner with growth of 16.3 per cent to 10 per cent of the market.

HP retained its number one position with 15 million shipments in the quarter. The firm increased its market share a fraction of a percentage to 18.9, but overall growth was down 2.8 per cent.

Full figures can be seen in the table below. Unit shipments are in thousands.