Round Rock-based Dell Technologies bucked the first quarter trend with its PC sales, seeing them grow by 6.5 percent while overall worldwide shipments declined, according to new industry data.
Worldwide PC shipments declined by 1.4 percent in the first quarter, according to tech industry research firm Gartner Inc. Total shipments dropped to 61.7 million units, according to Gartner, the 14th consecutive quarter of decline for the industry.
Dell, however, saw its PC shipments increase during the quarter, according to Gartner. Dell shipped 9.88 million PC units in the quarter, a 6.5 percent increase over the same quarter last year, when it shipped about 9.3 million units, according to Gartner. Dell also increased its global market share from 14.8 percent in the first quarter of 2017 to 16 percent in the first quarter this year, according to Gartner.
Although Dell Technologies has diversified into storage, servers and other IT products and services, PCs are still an important part of its revenue stream and product portfolio. The technology giant is the Austin area's largest private employer.
Dell Technologies remained third in worldwide PC shipments, trailing HP Inc. (12.86 million PC shipments) and Lenovo (12.35 million PC shipments), according to Gartner data. Dell, HP and Lenovo combined to account for 56.9 percent of all global PC shipments in the first quarter, according to Gartner data. Dell's 6.5 percent sales growth for the quarter was the strongest among the six largest PC sellers, according to Gartner. HP saw sales growth of 2.8 percent, while Lenovo's sales grew by less than 1 percent and Apple Inc. had sales growth of 1.5 percent.
A drop in sales in the United States and the Asia/Pacific markets led to the drop in overall units shipped during the quarter, Gartner said. PC shipments in Asia/Pacific declined 3.9 percent compared with the same quarter last year, while shipments in the U.S. were down by 2.9 percent, according to Gartner.
"The major contributor to the decline came from China, where unit shipments declined 5.7 percent year over year," said Mikako Kitagawa, principal analyst at Gartner. "In the first quarter of 2018, there was some inventory carryover from the fourth quarter of 2017. At the same time, vendors were cautious in overstocking due to the upcoming release of new models in the second quarter of 2018 with Intel's new eighth-generation core processors."
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