Although the quarter marked the beginning of a new stage in the PC industry with the launch of Windows 8, its impact did not quickly change recently sluggish PC demand, and the PC market continued to take a back seat to competing devices and sustained economic woes. As a result, the fourth quarter of 2012 marked the first time in more than five years that the PC market has seen a year-on-year decline during the holiday season.

The lackluster fourth quarter results were not entirely surprising given the spate of challenges the PC market faced over the course of 2012. IDC had expected the second half of 2012 to be difficult. Consumers as well as PC vendors and distribution channels continued to be diverted from PC sales by ongoing demand for tablets and smartphones. In addition, questions about the use of touch on Windows PCs vs. tablets slowed commercial spending on PCs.

"As anticipated, the US market had a rough ending, dropping 4.5% in the fourth quarter and contributing to a decline of 7% for the full year 2012," said David Daoud, research director, IDC.

Hewlett-Packard (HP) continued to defend its top position in IDC's worldwide ranking, recovering somewhat from past weakness in key markets. An aggressive push for Windows 8 volume helped the vendor make gains in Asia/Pacific and its home turf in the US HP struggled in EMEA but posted the first year-over-year growth in Asia/Pacific in four quarters. Total volume was nearly flat from a year ago, but better than the overall market.

Lenovo outpaced the market with growth of over 8%. Volume reached a new record-high of more than 14 million units, with continued success in channel wins in the US and EMEA. Despite the positive performance, Lenovo's gains remained significantly smaller than several quarters ago when the company was besting market growth by nearly 30%.

Dell continued to lose ground as it faces aggressive competition from other leaders and looks for better margins. Worldwide shipments were down over 20% year over year – faster than declines over the past several years – with US volume declining almost as much. The firm did manage sequential growth in most other markets.

Acer, like a few other vendors, remains heavily dependent on consumer spending. As a result, it has continued to suffer as consumers focus on other products. At the same time, Acer's cautious approach to the Windows 8 transition has contributed to slower notebook shipments.

Asustek Computer held onto its top-5 spot globally and stretched the distance between itself and other consumer-focused vendors with growth of 5.6% year on year. The firm racked-up strong gains across many regions, where its often innovative yet price-conscious offerings still managed to take root in spite of an increasingly tough landscape.

Source: IDC, compiled by Digitimes, January, 2013