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IDC: PC growth to slow significantly this year

Written by Andre Yoskowitz (Google+) @ 26 Aug 2012 22:38

IDC: PC growth to slow significantly this year According to IDC, the worldwide PC market will grow just 0.9 percent this year, especially as mid-year shipments slow.
The research firm says 367 million PCs will ship this year, up from 363 million last year.

Slowing growth in Asia has negated strong emerging market growth, and saturated markets like Western Europe and the U.S. have started seeing a volume decline.

Ultrabooks and Windows 8 should help, but the environment has became so competitive, that the growth may not be enough.

"The U.S. market will remain depressed until Windows 8 products hit the shelves in the fourth quarter of 2012. The industry is responding by reducing shipments of PCs and clearing Windows 7-based inventories to pave the way for a new generation of systems. But, as we move into the tail end of the third quarter, PC activity will continue to slow as demand drops. The third-quarter back to school season is also proving to be a challenging period, despite prices dropping to their lowest levels. We expect the year will end with shipments in the U.S. falling by 3.7 percent, marking the second consecutive year of contraction," said David Daoud, research director, Personal Computing at IDC.

"IDC remains optimistic that PC penetration opportunities in emerging markets will form the bulwark of the market and help sustain double-digit Portable PC growth in the long run. However, a host of all-too-familiar variables will lead to a subdued second half of the year with only consumer notebooks remaining in growth mode for all of 2012," noted Jay Chou, senior research analyst with IDC's Worldwide Quarterly PC Tracker. "Factors such as Windows 8 coupled with Ultrabooks could present a positive turn of events next year, but it also faces some initial hurdles; chief of which is that buyers must acclimate themselves to an operating system that is a dramatic departure from existing PC paradigms. The PC ecosystem faces some work to properly educate the market."

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