"Strong growth in tablets continued to negatively impact PC growth in emerging markets. In emerging markets, the first connected device for consumers is most likely a smartphone, and their first computing device is a tablet. As a result, the adoption of PCs in emerging markets will be slower as consumers skip PCs for tablets."

HP and Lenovo have been virtually neck and neck for the top global position in the PC market throughout 2013. Lenovo took the lead in the fourth quarter, as it did last quarter, accounting for 18.1% of global PC shipments. Lenovo's victory over the top position became apparent in 4Q13. Lenovo showed strong growth in all regions, except Asia/Pacific, where China continued to be a problematic country for the company.

HP experienced a shipments decline of 7.2% in the fourth quarter. U.S. and Latin America were two regions where HP could not increase its shipments, and it experienced a steeper decline compared with the regional average (see Table 1).

Figure I: Preliminary Worldwide PC Vendor Unit Shipment

Dell continued to maintain the third position and accounted for 11.8% of the market. With the completion of the leveraged buyout, Dell has redefined its strategic focus onto its PC and device businesses. Dell's focus is now beyond its traditional strength in the professional PC market; its focus is now also on consumer PCs, particularly in emerging markets.

Figure II: Table 1 Preliminary Worldwide PC Vendor Unit Shipment Estimates for 4Q13 (Units)

Acer and Asus's ranking remained unchanged compared with a year ago. Both companies have more focus on tablets, and their fourth-quarter results clearly proved their strategic focus. Ms. Kitagawa said Acer has established a strong position in the Chromebook market, while Asus has built a solid reputation as a tablet vendor. PCs are still strategic products for both companies, but share gain is not the top priority for them.

In the U.S., PC shipments totaled 15.8 million units in the fourth quarter of 2013, a 7.5% decline from the fourth quarter of 2012 (see Table 2). Despite a 10.3% decline in shipments, HP continued to be the No. 1 vendor in the U.S., as it accounted for 26.5% of shipments.

"Holiday sales of technology products were strong in the U.S. market, but consumer spending during the holidays did not come back to PCs as tablets were one of the hottest holiday items," said Ms. Kitagawa.

"We think that the U.S. PC market has bottomed out. A variety of new form factors, such as hybrid notebooks, drew holiday shoppers' attention, but the market size was very small at the time. Lowering the price point of thin and light products started encouraging the PC replacement and potentially some PC growth in 2014."

Figure III: Table 2 Preliminary US PC Vendor Unit Shipment Estimates for 4Q13 (Units)

PC shipments in EMEA totaled 25.8 million units in the fourth quarter of 2013, a 6.7% decline from the same period last year. However, the decline was less steep than the last seven quarters. All areas of the region — Western Europe, Eastern Europe and the Middle East and Africa — showed a shipment decline. Shipments in Eastern Europe were driven by the professional segment, as companies had to finalize IT spending for the year.

Consumers replaced PCs only on a needed basis, as many new form factors had limited availability or were priced about the average vs. traditional notebooks. Tablets, especially Android-based, were a popular holiday present and average selling prices (ASPs) for them continued to decline and attract consumer spending.

PC shipments in Asia/Pacific totaled 26.5 million units in the fourth quarter of 2013, a 9.8% decline from the fourth quarter of 2012. Buyers did not place a priority on PC purchases, preferring to spend on alternative devices such as smartphones. Some continued to delay their purchases of a PC as their requirements, such as entertainment and information access, can be addressed by other devices, such as tablets.

For the year, PC shipments were 315.9 million units, a 10% decline from 2012 (see Table 3). This is the worst decline in PC market history, equal to the shipment level in 2009. Lenovo took over the top spot in the global PC market, accounting for 16.9% of the market. HP moved into the second spot after experiencing shipment decline of 9.3%.

Figure IV: Table 1 Preliminary Worldwide PC Vendor Unit Shipment Estimates for 4Q13 (Units)

Table 3 Preliminary Worldwide PC Vendor Unit Shipment Estimates for 2013 (Units)