Thin and Terminal Client Outlook Lowered Due to Project Delays and Exchange Rate Challenges

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The FINANCIAL — The global thin and terminal client market deteriorated during the second quarter of 2015 (2Q15), declining -8.9% year over year, according to the International Data Corporation (IDC) Worldwide Quarterly Enterprise Client Device Tracker.

Pitted against a strong market in the first half of 2014, which was boosted by a mass refresh of aging PCs, the 2Q15 market continued to struggle against strong results from the first half of 2014 and furthermore, continued currency devaluation in markets outside of North America that produced project delays. With the exception of Asia/Pacific (excluding Japan), all regions saw sizable volume declines with most declining in the double-digit range.

In light of the aforementioned factors, IDC expects 2015 shipments to be even more subdued than previously expected, dropping to 5.0 million units, a total lower than both 2013 and 2014. IDC expects shipments to regain steady growth from 2016 through 2019, reaching 6.6 million units in 2019.

“The market is facing some short-term challenges with 2015 expected to decline more than -2% year over year,” said Jay Chou, Research Manager, IDC Worldwide PC & Enterprise Client Device Tracker. “Beyond 2016, we remain cautiously optimistic that growth rates will pick up as another cycle of business PC refresh will spur further penetration of thin client adoption.”

 

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