PC market returns to growth

The rise of smartphones and tablets has caused sales of traditional PCs to decline over the past few years. But during the first quarter of 2017, PC shipments rose annually for the first time in a half-decade, up 0.6%, according to IDC. Five companies controlled nearly 70% of that market: HP, Lenovo, Dell, Apple and Acer.

The U.S. remains a soft market for traditional PCs, with only cheap Chromebooks bucking the slowdown. Sales in Europe, the Middle East and Africa stabilized on better demand for notebooks. Sales across Asia (excluding Japan) remained weak, as prices rose on tighter component supplies. Though demand for high-end ultrabooks and gaming laptops continued in China, the commercial market performed better than the consumer arena. Sales in Japan jumped on higher demand for commercial PCs.

Looking ahead, the PC market will be influenced by tighter memory supplies, which could cause prices to rise, and more demanding games (such as virtual reality titles) lifting sales of higher-end desktops. Despite improvements, average PC shipments remain 30% below their 2011 peak — so this shouldn’t be deemed a recovery just yet. The Motley Fool owns shares of and recommends Apple.