Microsoft Corporation (NASDAQ:MSFT)’s Windows 10 Fails To Boost PC Sales

Share on FacebookTweet about this on TwitterShare on Google+Share on RedditShare on LinkedInPrint this pageEmail this to someone

It was widely expected that Microsoft Corporation (NASDAQ:MSFT)’s Windows 10 refresh would have a positive impact on PC sales. It hasn’t, at least going by summer PC sales figures. PC sales were down between 7.7% and 10.8% in 3Q2015, according to data supplied by Gartner and IDC. It remains to be seen whether the remainder of 2015 will be better.

The trouble in the PC market defied the help of Microsoft Corporation (NASDAQ:MSFT)’s Windows 10 launch with steepest decline in sales in the recent times being reported in 3Q. Although Windows 10 was expected to excite PC industry, possibly boosting sales, it cannot be blamed for everything. Multiple factors may have held back the growth of PC sales in the quarter. The adverse currency movement is one of the possible causes of PC industry weakness.

Impact of unfavorable currency movements

The stronger U.S. dollar has meant that PC prices have hiked in non-dollar markets, thus limiting the purchase power of many potential buyers. It also seems that PC vendors initially focused on shipping existing products with Windows 10 instead of creating brand new ones that have the potential of triggering strong demand. Perhaps some strength could be witnessed in the PC market in the balance of 2015 going forward as new products arrive with Windows 10.

Larger PC vendors escape with minor bruises

Despite the weakness in PC market, larger PC vendors appear to have weathered the storm largely unscathed. According to Gartner, PC sales in 3Q declined 7.7% YoY with only 73.7 million units being sold in the quarter. Lenovo Group Limited (ADR) (OTCMKTS:LNVGY),Hewlett-Packard Company (NYSE:HPQ), Apple Inc. (NASDAQ:AAPL) and Dell Inc registered sales decline of 4%, 4%, 1.5% and 0.5%, respectively in the quarter. However, Acer and Asus suffered greater loss with sales plunging 19.9% and 10.1% respectively. The rest of PC vendors registered 14.3% decline in sales in the quarter.

On its part, IDC reports that 3Q PC sales was down 10.8% overall, with Acer’s sales falling 25.9%.

Microsoft Corporation (NASDAQ:MSFT) allows free upgrade to Windows 10 for users with Windows 7 and Windows 8.

Top 5 Vendors, Worldwide PC Shipments, Third Quarter 2015 (Preliminary) (Shipments are in thousands of units)

Vendor

3Q15 Shipments

3Q15 Market Share

3Q14 Shipments

3Q14 Market Share

3Q15/3Q14 Growth

1. Lenovo

14,937

21.0%

15,699

19.7%

-4.9%

2. HP

13,905

19.6%

14,715

18.5%

-5.5%

3. Dell

10,120

14.3%

10,425

13.1%

-2.9%

4. Apple

5,324

7.5%

5,514

6.9%

-3.4%

5. Acer Group

4,997

7.0%

6,746

8.5%

-25.9%

Others

21,693

30.6%

26,459

33.3%

-18.0%

Total

70,976

100.0%

79,558

100.0%

-10.8%

Source: IDC Worldwide Quarterly PC Tracker, October 8, 2015

 

Neha Gupta

Neha Gupta has been in the financial space for over six years now. Gupta earned her MBA degree from Symbiosis Centre of Distance Learning in 2009 and her passion for finance led her to pursue Chartered Financial Analyst (CFA) course. She has successfully completed Level II of her CFA. She is a veteran in article writing, which is depicted in her numerous pieces published on SeekingAlpha, Nextiphonenews, InsiderMonkey, MarketWatch, and Techinsider. Her crisp and eloquent writing finds its best place in Researchcows, where emphasis is given on developing rich content for various websites, products, business plans, trainings, and book writing.

You may also like...

More in DELL, HPQ, LNVGY
emc2
Dell’s Buyout Of EMC Corporation (NYSE:EMC) Would Bolster Scale, Add Hugely Important Software Assets

It is emerging that Dell Inc.  is considering acquiring storage giant EMC Corporation (NYSE:EMC) in what could be a mega...

Close