The quarter ended better than expected, driven by intense channel activity and vendors' strategic adjustments. The indirect channels, for instance, have proven to be an important source of growth, a trend likely to continue in coming quarters.
David Daoud, Manager, Personal Computing and PC Tracker

Worldwide PC shipments grew by 12.5% in the second quarter of 2007 (2Q07), according to IDC's Quarterly PC Tracker. A competitive market in the United States helped boost overall growth.

"The success of HP and Acer as well as the rapid changes occurring at Dell in recent quarters underline just how dynamic the PC market is these days," said Loren IDC Director. "Despite the temptation to simplify, the market is not just about replacing systems at the lowest cost. System design, customer service, channel coverage, and market expansion are all playing key roles in winning business."

"The quarter ended better than expected, driven by intense channel activity and vendors' strategic adjustments. The indirect channels, for instance, have proven to be an important source of growth, a trend likely to continue in coming quarters," said David Daoud, manager of Personal Computing and PC Tracker Programs. "New product announcements are likely to stimulate demand in the coming months. However, IDC warns that a return to double-digit growth in the U.S. market will be difficult to achieve."

The United States market accelerated to 7.2% growth following a slow second half of 2006 as aggressive competition and repositioning continues. The Portables market remained strong, driven by consumer retail and channel activity. Although Desktop shipments continued to contract, shipment volume was higher than anticipated. Dell remained the top vendor, though still losing ground as it restructures and faces rising competition. HP sustained growth of 26%, gaining share from a year ago. Toshiba and Acer each accelerated growth substantially.
EMEA continued to grow at a solid, double-digit rate as Portable adoption and renewals remained key drivers. Consumer and SMB segments continued to respond very positively to new products and attractive price points. Competition among the leading vendors, HP and Acer in particular, remained very active with channel outreach and product promotions. Desktop volume increased only minimally as the shift to portables continues and corporate refreshes remained moderate.

Vendor Highlights
HP continued to experience strong growth in the United States as the company further consolidated its lead with growth of more than 36% worldwide. HP's share of worldwide shipments rose to 19.3% from 19.0% in 1Q07 and less than 16% a year ago.

Dell volume continued to decline as the company restructures itself amid aggressive competition. Commercial volume was relatively stable, while Consumer shipments declined rapidly with Dell moving away from the low end. Although shipments were down overall, growth improved from prior quarters in most regions. The company also launched a number of initiatives designed to boost sales, including a distribution agreement with Walmart, the new Vostro brand for small businesses, and color Portables for consumers.

Lenovo had a very solid quarter with shipments increasing 22% in EMEA, up from 14% in Q1 and single-digits in prior quarters.

Acer continued its rapid expansion in the Americas while posting strong gains in other regions as well. New retail and dealer partner agreements are quickly expanding the company's access to the market, contributing to volume gains. Global shipments were up over 55% year on year with all regions growing by at least 30%.

Toshiba had a strong quarter. Shipments in the U.S. were up 50% from a year ago, becoming the company's largest region.

Gateway shipments continued to decline in the face of rising competition. Volume was down almost 7% from a year ago, although this was slightly better than the first quarter.