LNVGY Lenovo Group Ltd (PK)

By Ezequiel Minaya 

World-wide shipments of personal computers fell in the first quarter of 2016 compared with a year earlier, the sixth consecutive quarter of declines and the first time since 2007 that shipments dropped below 65 million units, according to research firm Gartner Inc.

Separately, International Data Corp. said PC shipments in the first quarter fell 11.5% globally and 5.8% in the U.S.

Chinese PC maker Lenovo Group Ltd. remained the world's top shipper of PCs, according to both data trackers, but Dell Inc. surpassed HP Inc. to become the No. 1 vendor in the U.S. market.

Gartner estimated world-wide PC shipments totaled 64.8 million units, down 9.6% from a year earlier. In the U.S., PC shipments reached 13.1 million units, which represents a 6.6% decline from a year earlier and the lowest volume in three years, the firm said.

The sector has faced headwinds in recent quarters which include an economic slowdown in China, the strong U.S. dollar and the growing popularity of smartphones.

Gartner said that all major regions have posted shipment declines in the latest quarter, with Latin American registering the steepest fall because of currency impacts. Brazil's economic woes and political instability also helped pressure personal computer shipments, which tumbled 32.4%. Sagging oil markets also weighed on the sector.

IDC said inventory reductions, which were a problem in 2015, seem to be wrapping up and that economic conditions were rebounding in some areas. Nonetheless, the firm said that in the short term, "the PC market must still grapple with limited consumer interest and competition from other infrastructure upgrades in the commercial market."

Lenovo clung to the top spot in world-wide shipments in the first three months of 2016 despite a decline of more than 7%, according to both data trackers. The company saw shipments fall in all regions except in the U.S., where Lenovo posted a sharp increase, both firms said.

HP, one of two companies spun off from the split of Hewlett-Packard, was second to Lenovo and had a larger year-over-year decline than its Chinese rival, both firms said. Gartner said HP faces challenges as it aims to focus on higher-end sales, which cost it shipments.

In the U.S., Dell passed HP and had more than a quarter of the PC market, both firms said. Dell's U.S. shipments increased, year-over-year, while HP's total fell by a double-digit percentage, the data trackers said.

"Strong shipments of notebook PCs helped [Dell] achieve the best quarter among the top 5 vendors," IDC said.

Apple Inc. was fourth in the U.S., both firms said, and continued to outpace the market.

Write to Ezequiel Minaya at ezequiel.minaya@wsj.com

(END) Dow Jones Newswires

April 12, 2016 08:30 ET (12:30 GMT)

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