Press Release

, January 18, 2006 View All Press Releases

Gartner Says EMEA Region Became Largest PC Market in the World Based on Unit Shipments in 2005

Worldwide PC Shipments Increased 15 Percent in 2005

STAMFORD, Conn., January 18, 2006 - For the first time, the Europe, Middle East and Africa (EMEA) region surpassed the United States as the largest PC market, based on 2005 shipments, according to preliminary statistics by Gartner, Inc. PC shipments in EMEA totaled 72.6 million units in 2005, while PC shipments in the U.S. reached 67.2 million units (see Table 2).

"The EMEA region finished the year with a strong fourth quarter in 2005, as more than 20 million units were shipped, a 17.2 percent increase from the fourth quarter of 2004 ," said Ranjit Atwal, senior analyst for Gartner's Computing Platform Group in EMEA. "The consumer market did well in the region, especially in the mobile PC market where significant promotions in all countries led to exceptional demand."

Table 1
Preliminary EMEA PC Unit Shipment Estimates for 2005 (Thousands of Units)
Company 2005 Shipments 2005 Market Share (%) 2004 Shipments 2004 Market Share (%) 2005-2004 Growth (%)
Hewlett-Packard 11,536 15.9 9,966 16.1 15.7
Dell Inc. 8,453 11.6 6,584 10.6 28.4
Acer 6,523 9.0 4,359 7.0 49.7
Fujitsu/Fujitsu Siemens 5,383 7.4 4,230 6.8 27.3
NEC 2,816 3.9 1,904 3.1 47.9
Others 37,937 52.2 34,971 56.4 8.5
Total 72,649 100.00 62,014 100.00 17.1
Note: Data includes desk-based PCs, mobile PCs and X32/64 servers.
Source: Gartner Dataquest (January 2006)

In EMEA, the professional market started slowly, but gained momentum towards the end of the quarter. Whilst growth seems to be driven by increased demand, concerns over inventory continue to exist. With the exception of Hewlett-Packard, all the vendors increased their average days of inventory over 2004, rising for some of them by more than a third.

In the fourth quarter of 2005, Hewlett-Packard became the first PC vendor to ship over three million PCs in a single quarter. Lenovo suffered from their absence in the consumer market, combined with the failure of positioning their products competitively in the professional desk-based market. This resulted in a decline of seven percent in the fourth quarter of 2005. By contrast, NEC produced a second consecutive strong quarter with continued growth in distribution channels, as well as profiting from shelf space attained last quarter. As a result, NEC displaced Lenovo from their fifth position.

Across many regions in 2005, the mobile PC market showed high growth. "Mobile growth came to some extent at the expense of desk-based PCs," said Charles Smulders, vice president of Gartner's Computing Platforms Worldwide Group. "Emerging regions had steady desk-based PC growth, however it could not offset the very weak desk-based PC growth in the mature regions."

Table 2
Preliminary Worldwide PC Unit Shipment Estimates for 2005 (Thousands of Units)
All Geography 2005 Shipments 2005 Market Share (%) 004 Shipments 2004 Market Share (%) 2005-2004 Growth (%)
EMEA 72,649 33.2 62,014 32.7 17.1
United States 67,153 30.7 62,443 32.9 7.5
Asia/Pacific 42,777 19.6 33,947 17.9 26.0
Latin America 14,711 6.7 11,671 6.2 26.0
Japan 14,662 6.7 13,635 7.2 7.5
Canada 6,583 3.0 5,829 3.1 12.9
Total 218,533 100.0 189,539 100.0 15.3
Note: Data includes desk-based PCs, mobile PCs and X86 servers.
Source: Gartner Dataquest (January 2006)

While worldwide PC shipments increased 15.3 percent in 2005, Dell continued to grow more than the industry average, as its worldwide PC shipments grew 18.6 percent in 2005 (see Table 3). However, Dell's worldwide growth rate started to slow down in the second half of 2005. During the fourth quarter, Dell's growth slightly exceeded the worldwide average, and it gained more from overseas markets. Hewlett-Packard also did well in non-U.S. markets in the fourth quarter, but it performed a little below the U.S. average.

Table 3
Preliminary Worldwide PC Vendor Unit Shipment Estimates for 2005 (Thousands of Units)
Company 2005 Shipments 2005 Market Share (%) 2004 Shipments 2004 Market Share (%) 2005-2004 Growth (%)
Dell 36,764 16.8 31,009 16.4 18.6
Hewlett-Packard 31,792 14.5 27,623 14.6 15.1
Lenovo 15,054 6.9 12,937 6.8 16.4
Acer 10,154 4.6 6,425 3.4 58.1
Fujitsu/Fujitsu Siemens 8,326 3.8 7,144 3.8 16.5
Others 116,443 53.3 104,401 55.1 11.5
Total 218,533 100.00 189,539 100.00 15.3
Note: Data includes desk-based PCs, mobile PCs and X86 servers.
Source: Gartner Dataquest (January 2006)

In the United States, fourth quarter results confirmed that the U.S. professional market replacement cycle has peaked. "Both small and midsize business (SMB) and enterprise markets showed softness in demand," said Mika Kitagawa, principal analyst in Gartner's Computing Platforms Worldwide Group. "This slow down was mainly driven by poor desk-based PC sales. Professional mobile PC growth was very steady, especially in the SMB market."

In the Asia/Pacific region, China, South Korea and India continued to perform well in the fourth quarter. China had strong demand in the professional segment due to fiscal year-end spending, while in the consumer market, leading vendors had some success in their winter promotion programs. In India, PC sales are expanding beyond the major cities.

In Latin America, desk-based PC shipments grew 20 percent in the fourth quarter, while notebook shipments grew 51 percent. The consumer market grew by 25 percent, while consumer notebooks surpassed 112 percent growth.

PC shipments in Japan appear modest for the fourth quarter, however many of the new PCs targeted for the winter bonus shopping season had been shipped in September instead of the fourth quarter. As more vendors started shipping their mainstream models in September, this limited fourth quarter shipment growth to the high single digits, while the third quarter posted 18.4 percent growth.

These results are preliminary. Final statistics will be available soon to clients of Gartner's PC Quarterly Statistics Worldwide by Region program. This program offers a comprehensive and timely picture of the worldwide PC market, allowing product planning, distribution, marketing and sales organizations to keep abreast of key issues and their future implications around the globe. To subscribe to this program, please call 408-468-8000. Additional research can be found on Gartner's Computing Hardware section on Gartner's Web site.

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