Worldwide shipments of traditional PCs (Desktop, Notebook, and Workstation) totaled 70.2 million units in the fourth quarter of 2016 (4Q16), posting a year-on-year decline of 1.5%, according to the International Data Corporation (IDC) Worldwide Quarterly Personal Computing Device Tracker. The results continued the recent trend of stabilizing growth, which has been in decline since 2012.

Annually, shipments of traditional PCs slipped to 260 million units, down 5.7% from 2015. The first quarter of 2016 was still constrained by high inventory, free Windows 10 upgrades, and difficult comparisons to commercial replacements in 2014 that were fueled by the end of support for Windows XP. However, mid-2016 and particularly the recent fourth quarter have moved beyond these inhibitors and seen stabilizing commercial demand. Contraction of the consumer PC market has also slowed as growth and competition from tablets and phones has eased up. Recent quarters have faced some tight supply of components such as SSDs, displays, and memory. The supply constraints did not significantly slow overall shipments, and in fact may have boosted growth slightly and accelerated market consolidation as the largest players moved to lock up supply.

Mature regions continued to perform best. Japan and Canada extended positive growth from 3Q16, while volume in the Europe, Middle East, and Africa (EMEA) region was stable. Shipments in the United States declined slightly, although the country performed slightly better than the global average. Asia/Pacific (excluding Japan)(APeJ) continued to improve with only a mild decline in shipments while Latin America continued to experience significant contraction.

"The fourth quarter results reinforce our expectations for market stabilization, and even some recovery," said Loren Loverde, vice president, Personal Computing Trackers & Forecasting. "The contraction in traditional PC shipments experienced over the past five years finally appears to be giving way as users move to update systems. We have a good opportunity for traditional PC growth in commercial markets, while the consumer segment should also improve as it feels less pressure from slowing phone and tablet markets."

"The U.S. PC market was able to pull off a strong last quarter of the year with impressive growth in the retail PC segment that surpassed expectations," said Neha Mahajan, senior research analyst, Devices & Displays. "Although this might signal regained consumer confidence in the PC market, with most of the sales being driven by aggressive promotions in the holiday season, it needs to be seen how much of the real demand is carried forward in the coming quarters."

The United States market witnessed a slight decline in shipments this quarter. Following inventory growth in the third quarter, the fourth quarter saw growth toning down. At the same time, the retail PC market in the U.S. came out strong, backed by aggressive promotions by top PC vendors in December. Overall, traditional PC shipments for 4Q16 stood at 17.0 million units.

Read the full IDC press release here.