TECHNOLOGY

Dell makes gains as global PC shipments rise

Bob Sechler
bsechler@statesman.com
One of Dell Technologies' line of Rugged Laptops is shown in an Austin testing lab. Dell has seen six consecutive quarters of gains in global PC sales, a growth trend that "has been the most consistent out of the top vendors over the past three years," according to industry research firm Gartner.

[RICARDO B. BRAZZIELL/AMERICAN-STATESMAN/FILE]

Worldwide shipments of personal computers inched upward in the second quarter after two quarters of declines, although the potential for tariff-induced price increases stemming from the U.S.-China trade dispute is being viewed as a threat to the turnaround.

Round Rock-based Dell Technologies -- the third-largest PC vendor globally behind Lenovo and HP Inc. -- shipped 10.65 million in the second quarter, according to the data from tech industry research firm Gartner Inc., up 2.1% form the same period last year.

Gartner noted that the increase marked Dell's sixth consecutive quarter to post gains, a growth trend that "has been the most consistent out of the top vendors over the past three years." Dell Technologies is the largest private employer in the Austin metro area, with about 13,000 workers in Central Texas.

Total PC shipments worldwide climbed 1.5% in the second quarter, to 63 million units. Lenova shipped 15.77 million, a nearly 16% increase from the year-ago period, while HP shipped just under 14 million, for a 2.6% gain.

Gartner credited a number of factors for the overall growth in the global PC market, including strong demand from businesses upgrading to Microsoft Corp.'s Windows 10 operating system and an easing of a shortage of Intel Corp. microprocessors that had been crimping some sales.

Still, the uptick in shipments could be short-lived. Gartner senior principal analyst Mikako Kitagawa said that the outlook for the global PC market is cloudy because of U.S.-China trade tensions.

"The next phase of tariffs could have significant impact," Kitagawa said in a written statement. "Most laptops and tablets are currently manufactured in China and sales of these devices in the (United States) could face significant price increases if the punitive tariffs are imposed and vendors do not take quick action to respond."

Overall, Lenovo, HP and Dell accounted for 64.1% of global PC shipments in the second quarter, up from 60.7% in the year-ago period, a trend Gartner attributed to the "economies of scale" that the top three vendors wield in the market. In addition, Lenovo's big increase in shipments -- which caused its share of the market to climb from about 22% to 25% -- might reflect"some anticipation of the potential tariffs," Gartner said, possibly prompting customers to front-load orders.

Dell's share of the worldwide market came in at 16.9% in the second quarter, about even with its 16.8% share a year ago.

Apple Inc., the fourth-largest vendor, shipped 3.7 million PCs in the quarter, down about 0.2% from the year-ago period, for a market share of 5.9%.

Gartner said worldwide demand for desktop PCs was strong in the second quarter, offsetting a decline in shipments of mobile PCs.

In the United States, PC shipments slipped about 0.4% in the quarter, compared to the year-ago period, coming in at about 14.5 million. Dell -- the No. 2 U.S. vendor behind HP -- shipped 4.1 million units in the country, up about 0.5% for a market share of 28.4%, according to Gartner.