Fall in PC Sales and the Impact on Microsoft Windows Revenue

Earlier in the series, we saw how a steady fall in global PC (personal computer) shipments in 3Q16 is bound to impact Microsoft (MSFT). The company’s MPC (More Personal Computing) segment draws a significant portion of its revenues from the PC market.

Since 2011, the global PC market has been falling. In 1Q16, 2Q16, and 3Q16, PC shipments fell 9.6%, 5.2%, and 5.7%, respectively. The third quarter of 2016 marked the eighth consecutive quarter that PC shipments have fallen. If this fall continues in 4Q16, 2016 will be the fifth straight year that PC sales have fallen.

The top six vendors—Lenovo (LNVGY), Hewlett-Packard (HPQ), Dell, ASUS, Apple (AAPL), and Acer—collectively contributed approximately 78.0% to global PC shipments in 3Q16. IDC (International Data Corporation) estimates also show that the largest vendors in the PC space continue to gain market share consistently and have the edge over small players by “dominating component supply and shelf space.”

According to IDC, the top three vendors—Lenovo, Hewlett-Packard, and Dell—held ~58.0% of the PC market in 3Q16, which compares to 55.0% and 51.0% in 2015 and 2014, respectively, as table below shows.

View more information: https://marketrealist.com/2016/10/fall-global-pc-sales-will-impact-msfts-windows-revenues/

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