Lenovo PC sales plunge; US market share drops, new report finds | WRAL TechWire

Lenovo PC sales plunge; US market share drops, new report finds

Lenovo PC sales plunge; US market share drops, new report finds

Lenovo's foldable laptop. (Lenovo image)

MORRISVILLE – Lenovo, the world’s leader in PC sales, remains No. 1 but its sales numbers were hammered in the second quarter and its market share in the U.S. has dropped, according to a new report.

Data firm Gartner reports that Lenovo’s PC shares fell more than 20% in the second quarter but the company maintained its marsket share leadership at nearly 25%.

In the U.S., sales also fell and Lenovo’s market share dropped nearly a percentage point to 16.4% after sales in this country dropped more than 21%. This is the third straight quarter Lenovo shipments have fallen year over year, Gartner adds.

But Lenovo, which operates dual headquarters in Morrisville and Beijing, was far from alone. Only Apple sales increased among the market leaders while overall shipments plummeted nearly 13% – the biggest drop in nine years, according to Gartner.

So what’s going on?

“Geopolitical, economic and supply chain challenges impacting all regional markets,” Gartner says.

“The decline we saw in the first quarter of 2022 has accelerated in the second quarter, driven by the ongoing geopolitical instability caused by the Russian Invasion of Ukraine, inflationary pressure on spending and a steep downturn in demand for Chromebooks,” said Mikako Kitagawa, research director at Gartner, in the new report. “Supply chain disruptions also continued, but the major cause of PC delivery delays changed from component shortages to logistics disruptions. Enterprise buyers continued to experience longer PC delivery times than usual, but the lead times began to improve by the end of the second quarter, partially because key cities in China reopened in the middle of the quarter.”

Then there’s inflation.

Inflation is forcing price increases “despite weakening demand,” Kitagawa explained. “The reduction in the mix of PCs from Chromebooks, which tend to have low price points, and shift to premium products also helped increase the average ASP. However, an increase in inventory, especially in the consumer channel, could cause an ASP decline as vendors will try to lower inventory.”

The latest numders:

Preliminary Worldwide PC Vendor Unit Shipment Estimates for 2Q22 (Thousands of Units)

Company 2Q22 Shipments 2Q22 Market Share (%) 2Q21 Shipments 2Q21 Market Share (%) 2Q22-2Q21 Growth (%)
Lenovo 17,863 24.8 20,419 24.8 -12.5
HP Inc. 13,506 18.8 18,617 22.6 -27.5
Dell 13,298 18.5 14,035 17.0 -5.2
Apple 6,365 8.8 5,822 7.1 9.3
Acer 5,094 7.1 6,264 7.6 -18.7
ASUS 4,697 6.5 4,909 6.0 -4.3
Others 11,186 15.5 12,359 15.0 -9.5
Total 72,011 100.0 82,424 100.0 -12.6

Dell takes top spot in US

In the U.S. meanwhile, Dell has surged past HP into the top seller spot.

Preliminary U.S. PC Vendor Unit Shipment Estimates for 2Q22 (Thousands of Units)

Company 2Q22 Shipments 2Q22 Market Share (%) 2Q21 Shipments 2Q21 Market Share (%) 2Q22-2Q21 Growth (%)
Dell 5,566 27.2 5,725 23.0 -2.8
HP Inc. 4,563 22.3 8,075 32.5 -43.5
Lenovo 3,354 16.4 4,297 17.3 -21.9
Apple 3,128 15.3 2,618 10.5 19.5
Acer Group 1,340 6.5 1,625 6.5 -17.6
Others 2,549 12.4 2,510 10.1 1.5
Total 20,500 100.0 24,850 100.0 -17.5