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The PC market crumbles in sales with the biggest drop since 2007

The PC market can’t catch a break and collapsed in sales in the first quarter of 2016, according to preliminary results of the major consulting market.

Gartner estimates that the total number of PCs sold in the first quarter of 2016 amounted to 64.8 million units for an annual fall of 9.6 percent, continuing the indentation of 2015 resulted in negative record sales in the PC market.

PC market

It is the worst figure recorded for a first quarter since PC sales fell below 65 million units in the same quarter of 2007. It is also the sixth in a series of falls that seem to have no end.

IDC data seems even worse, although it should be noted that the firm uses a different metric and does not include, for example, sales of “2 in 1”, such as the Surface Pro 4, Surface Book, iPad Pro or Pixel C, which are one of the segments with the best behavior. With detachables out, the PC market decline would have been 11.5 percent.

PC market

Causes of PC market crash

The economic crisis that drag some world regions or the big rise of the dollar against major currencies is impacting sales of personal computers by increasing the price of all technologic devices, are two factors that explain the downfalls by themselves.

We should not forget either the rise of the era of mobility, which has placed the classic PC in competition with other computer formats such as smartphones and tablets, although for many users the PC remains their main computer.

The consultants explained that the launch of Windows 10, so far, has had minimal impact on sales, contrary to what had been happening in general with each new release of Windows. The case could be attributed to the gratuity of the OS for upgrades from Windows 7 and Windows 8.1, as well as its simple hardware requirements.

Considering the quota increase of Windows 10, it appears that users are simply opting to upgrade existing PCs to Microsoft’s new system and not buying new equipment.

PC market in 2016

Despite the current devastating panorama, consultants see signs of stabilization throughout the year, with forecast sales increasing, especially in the enterprise market after migration programs to Windows 10 expected by the end of 2016.

The education market and interest segments such as minicomputers will increase, PC gaming and upcoming VR and attractive “2 in 1” and convertibles, should contribute to a rebound in sales and the end of a bleeding that has lasted a few years now.

And as we have noted on other occasions, the sale of components, peripherals and accessories that are not included in these lists of new equipment, consist a very important income for the entire sector. There’s no precise data, but it is believed that this segment is improving as users upgrade their computers, replacing hard drives with SSDs, increasing the amount of RAM, improving their graphics cards or buying a new monitor.

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