Canalys: Lenovo Still Leads AS China’s PC Market Shrinks By 1% in First Quarter

Canalys: Lenovo Still Leads AS China’s PC Market Shrinks By 1% in First Quarter

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Canalys: Lenovo Still Leads AS China’s PC Market Shrinks By 1% in First Quarter
Pc shipment in china
According to canalys China’s PC market (desktop, notebook, and workstation) shipments dropped slightly from 1% to 11.75 million units in Q1 last year. Desktop shipments including desktop workstations were also down from 11% annually to 3.9 million units. While the Notebook including mobile workstation shipments still remains strong, with annual growth of 6% to 7.7 million units.

Lenovo initially was the top leading market with 4.29 million units shipped for the period and with a 37% market share. While Dell was the second leading market with 1.39 million and 12% of the market, however, HP was the third leading market with 0.97 million and 8% market share. Consequently, Asus with 0.83 million and Huawei with 0.71 million complete the top five positions. Desktop sales fared even worse with an 11% decline to 3.9 million units annually, while notebooks were the only product category to experience growth of 7.7 million units combined and one market share of 6%.

Four consecutive times China tablet market experiences declines in Q1 2022, with shipments down from 13% to 4.7 million units following supply issues and weaker demand together with consumers and businesses.

People’s Republic of China (Mainland) PC (Desktop, Notebook & Workstation) Shipment & Growth, Canalys PC Market Pulse: 1st quarter 2022

vendor Q1 2022 Shipments (thousands) Q1 2022 Market Share Q1 2021 Shipments (thousands) Q1 2021 Market Share annual increase
Lenovo 4,289 37% 4,276 36% 0%
Ditch 1,389 12% 1,295 1 1% 7%
Himachal Pradesh 975 8% 1,132 10% -14%
Asus 833 7% 624 5% 34%
Huawei 710 6% 428 4% 66%
Other 3,462 30% 3,996 34% -13%
Total 11,657 100% 11,750 100% -1%

NOTE: Percentages may not be up to 100% due to rounding off figures.
SOURCE: Canalys PC Analysis (Sell-in Shipment), May 2022.

Whereas the first quarter in 2022 was still relatively strong, China’s PC industry experiences additional challenges on both the supply and demand sides as the consequence of COVID-19 lockdowns has increased. According to Canalys Analyst Emma Xu “Supply shortages of key components, such as driver ICs, moved further to Q1, while equally production and logistics have worsened significantly due to lockdowns in the key cities of Shanghai and Kunshan.

Meanwhile, restrictions on business as well as consumer activity amid a worsening economy threaten the force of domestic demand for PCs. Weaker consumer expenditure and constrained commercial demand, particularly from SMBs, will bring about a challenge to PC the vendors in China for the remaining year.

 The Public division procurement is also set to shrink as the government policy tightens its budget this year. But the education section is likely to stay on a bright spot as the goals of reduced socioeconomic disparities and enhanced vocational education programs may be set to drive investment that will be of advantage to the technology market. Finally, the competitive landscape for PC wholesalers in China is put to tip even additional in favor of local brands. The administration is making a renewed push to put boundaries to security concerns around the use of hardware and software developed by foreign bodies. The wholesalers such as Huawei and Tongfang are set to see extraordinary opportunities as core members of China’s ‘Xinchuang’ industry, which focuses on improving domestic IT innovation.” 

Lenovo’s shipment was flat in the first quarter of 2022, at 4.3 million units, as growth was obstructed by weakness in its desktop business, which declined 16%. in spite of that, Lenovo extended its huge lead in China to get a 37% market share. Dell took second place with 7% growth and 1.4 million PCs shipped on the back of its strong performance within both commercial and gaming sectors. HP was just the only vendor that posted a decline in Q1, with shipments of just below a million units, 14% lower than in the first quarter of 2021. The Asus was in fourth (4th) place with 34% annual growth, while Huawei replaced Acer in fifth (5th) place with a notable growth of 66%. Huawei has extended its objectives in the PC space by releasing a wider manufactured range, along with competitive value with improved advertising hard work.

Tablet shipments & growth in the People’s Republic of China (Mainland), Canalys PC Market Pulse: Q1 2022.

Salesperson Shipments Q1 2022 (thousands) Market share in the first quarter of 2022 Shipments Q1 2021 (thousands) Market share in the first quarter of 2021 Annual growth
Apple 1,200 26% 1,682 31% -29%
Huawei 926 20% 1,037 19% -11%
Xiaomi 600 13% N / A 0% N / A
Honor 421 9% 414 8% 2%
Lenovo 320 7% 385 7% -17%
Other 1,223 26% 1,875 35% -35%
Total 4,691 100% 5,393 100% -13%

Notes: Percentages may not reach 100% due to rounding off figures.
Source: Canalys PC Analysis (sell-in shipments), May 2022.

Apple and Huawei still remained the first and second in China’s tablet rankings, but both of them faced supply issues, which leads to declines of 29% and 11% respectively. The Chinese tablet market changed in Q1 2022 due to Xiaomi’s rapid rise. With a huge focus on its Mi Pad line, Xiaomi scaled to third place with 0.6 million units shipped subsequent to three-quarters of reliable growth. HONOR was the only brand to experience positive annual growth, taking fourth place with 2% annual growth, whereas Lenovo ended in the top five with a 17% annual fall in shipments.

According to Canalys Analyst Emma Xu “The surge in tablet use in China throughout the pandemic has paved the way for new vendors to go into the market,” “the Tablet shipments reached a high in 2020, with Apple the major beneficiary, as there were limited brand options as Huawei struggled. Although the market’s momentum was lost as life returned to its standard, we are now seeing similar circumstances develop as the latest lockdowns are in place to cause an uptick in demand.

The only difference this time around is that smartphone vendors such as OPPO, Vivo, and realme have commenced their first tablets as part of their strategies to build wider product ecosystems. These players are entering the market at an instance when the Chinese government is encouraging investment in digital education, not just in large cities, but also in smaller towns and rural areas. The achievement of these new entrants will securely rest on their ability to deliver quality user experiences in line with developing consumer needs while also navigating a difficult supply chain environment.” 

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Canalys: Lenovo Still Leads AS China’s PC Market Shrinks By 1% in First Quarter
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