Monday Morning Impact – April 29

After a period of decline, the PC market has returned to growth mode.

According to market researcher International Data Corporation (IDC), PCs worldwide posted 59.8 million shipments, growing 1.5% year over year, during the first quarter of 2024 (1Q24). Growth was largely achieved due to easy year-over-year comparisons as the market declined 28.7% during the first quarter of 2023, which was the lowest point in PC history, according to IDC. In addition, global PC shipments finally returned to pre-pandemic levels as 1Q24 volumes rivaled those seen in 1Q19 when 60.5 million units were shipped.

With inflation numbers trending down, PC shipments have begun to recover in most regions, leading to growth in the Americas as well as Europe, the Middle East, and Africa (EMEA). However, the deflationary pressures in China directly impacted the global PC market. As the largest consumer of desktop PCs, weak demand in China led to yet another quarter of declines for global desktop shipments, which already faced pressure from notebooks as the preferred form factor.

Among the top 5 companies mentioned in IDC’s research, Lenovo once again held the top spot and outgrew the market largely due to the steep decline in shipments experienced in 1Q23. Apple’s strong growth was also due to an outsized decline in the prior year.

Meanwhile, research from Canalys pointed to stronger growth for Q1 with total shipments of desktops and notebooks growing 3.2% annually to 57.2 million units. Notebook shipments (including mobile workstations) were up 4.2% to 45.1 million units, while desktop shipments (including desktop workstations) were relatively flat, down just 0.4% at 12.1 million units. Though modest, this growth highlights the ongoing recovery in PC demand across all segments, with purchases set to accelerate throughout the year, supported by the tailwinds of Windows 11 refresh and AI-capable PCs.

“Growth in the first quarter of 2024 bodes well for a strong PC market throughout the year,” said Ishan Dutt, Principal Analyst at Canalys. “Vendors and the channel have been working through some final stages of inventory corrections, and macroeconomic conditions in certain markets continue to limit demand. But the strength of the refresh opportunity, particularly from businesses, is beginning to come to the fore. The market is set to go from strength to strength in the coming quarters as customers prioritize upgrades in preparation for a large-scale transition to Windows 11.”

According to Canalys, Lenovo led the PC market in Q1 2024 with a 24% market share, delivering strong growth of 8% and shipping 13.7 million notebooks and desktops. Second-placed HP posted a flat performance, shipping 12.0 million units. Dell secured third place but suffered a minor shipment decline of 2% year on year. Apple took fourth place in the vendor rankings with growth of 2.5%, boosted by the launch of new MacBook Air products late in the quarter. Acer rounded out the top five vendors with 3.7 million PCs shipped.

Channel Impact^®
The current PC installed base is large and getting older, presenting a huge opportunity for OEMs and their partners.

Logpoint announced the roll-out of two new distinct partner programs for Managed Security Service Providers (MSSPs) and other channel partners as an effort to provide clarity, simplicity, and increased value.

The new MSSP program will come with a dedicated starter pack, which includes a platform intended to help MSSPs more easily operate and manage large and multitenant deployments. The pricing strategy is based on nodes as opposed to data volumes, and can be managed through a subscription model or by quarterly consumption.

“The threat landscape is changing with more pressure on organizations in the mid-market, as they face more sophisticated threats and need help establishing adequate defenses,” says Antti Vilhunen, Logpoint Regional Director for Northern Europe. “We’re seeing an increased move in that segment towards MSSPs, offering extensive cybersecurity skills and advanced threat intelligence technologies to help improve the security posture and manage risk.”

Meanwhile, the new channel program leverages a simplified tiering structure. Depending on a regional assessment, partners can achieve silver and gold status, providing access to different levels of training and sales engineering enablement. The total partner discount available is 20 percent for Silver certified partners and 30 percent for Gold certified partners. The Copenhagen-based company has also implemented a streamlined deal registration process, and has added a new lifecycle services structure.

Channel Impact^®
The new programs are intended to promote ease-of-doing-business for the company’s network of MSSPs and traditional channel partners.