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Surface Makes a Dent in the U.S. PC Market

It's time to start talking about the Microsoft Surface in discussions about top-selling PCs.

Gartner this week published its preliminary quarterly results for PC unit shipments in the third quarter of 2018. On the U.S. list, Microsoft ranked fifth for the quarter, with a 4.1 percent share of the market.

It's a long way from No. 5 to No. 4. According to Gartner, Microsoft shipped 602,000 units in the quarter. Apple, by contrast, moved more than 2 million units in the quarter for fourth place and a 13.7 percent share. The top vendor for the quarter, HP Inc., sold more than 4.5 million units and held a 30.7 percent share in the U.S. market.

In terms of movement, Microsoft is heading in the right direction, with 1.9 percent year-over-year growth for the quarter, a period when Apple dropped by 7.6 percent.

Lenovo, powered by its joint venture with Fujitsu, vaulted 22 percent in the United States, and a 10.7 percent gain worldwide put the computer maker in first place on Gartner's global list for the quarter. Dell rounds out the U.S. top five in second place.

While Microsoft may be a somewhat distant fifth, the results suggest that individual Surface models would rank among the most popular Windows devices. Microsoft has only a few types of Surface -- mainly the Surface Pro, Surface Book, Surface Laptop and Surface Go -- compared to dozens of lines from its established PC OEM partner/competitors.

The backdrop is a relatively flat U.S. PC market, where overall shipments dropped 0.4 percent, with business PC demand nearly offsetting declines in mobile PC shipments. Because Gartner defines Google Chromebooks as outside the PC market, its figures don't include the double-digit growth of those devices in the United States.

The Surface is gaining ground at a good time for Windows PCs in the commercial sector. Gartner expects business demand for Windows PCs to remain strong. Referring to the global market, analyst Mikako Kitagawa said in a statement, "The PC market continued to be driven by steady corporate PC demand, which was driven by Windows 10 PC hardware upgrades. We expect the Windows 10 upgrade cycle to continue through 2020 at which point the upgrade demand will diminish."

Extended support for Windows 7 formally ends on Jan. 14, 2020. That operating system retained a narrow lead over Windows 10 for the most popular operating system in September, according to Net Applications. That measure and recent Microsoft statements suggesting enterprises were about halfway through their Windows 10 migrations both indicate that there is a lot of remaining potential for Windows 10-based hardware upgrades.

Posted by Scott Bekker on October 12, 2018


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