Global PC Shipments Decline For First Time Since Recession

Global shipments of personal computers declined for the first time since the end of the recent recession, as events in the Middle East and Japan added to nascent business spending and a cautious consumer, industry tracker International Data Corp. said.

In the first quarter, global PC shipments fell 3.2%, IDC said, below its projected forecast for 1.5% growth.

The results underscore challenges facing top computer manufacturers as tablet computers such as Apple Inc.'s (AAPL) iPad attract the interest of consumers and corporations alike. Equally sigificant has been the advancement of computer components, which continue to get faster and more efficient. Those parts have extended the usable lifetime of a computer and allowed consumers and businesses to stall what once were essential upgrades.

"The U.S. and world-wide PC market continues to work through a difficult era that we expect will continue into next quarter, but will start to improve in the second half of the year," said IDC analyst Bob O'Donnell.

Demand in the U.S. fell more than 10% from the same time last year, while shipments to Asian and Pacific regions other than Japan increased 5.6%, disappointing IDC analysts who had hoped for stronger growth.

Hewlett-Packard Co. (HPQ) maintained its position as the world's top computer maker, out-shipping second-place Dell Inc. (DELL) by roughly 5 million units, though both company's shipments declined slightly from the same time last year, according to IDC.

H-P's growth was able to outperform most markets, IDC said, although it did struggle in some Asian countries. By comparison, Dell made significant strides in emerging markets, but it posted disappointing shipments in key markets, such as the U.S.

Acer Inc (2353.TW) ranked third as its shipments fell nearly 16%, IDC said. But in the U.S., where Acer fourth behind Apple, the Taiwanese computer maker's shipments dove more than 42%.

The reason, IDC said, was that the company dove head-first into making netbooks--tiny no-frills cheap laptops--and hasn't been able to effectively combat slowing sales with different products. The company is also focused on consumer products, IDC said, which means it won't benefit as well from business spending expected to rise sometime in the second half of the year.

Apple, in the mean time, saw its U.S. shipments rise 9.6% in the first quarter, netting it 8.5% market share in the U.S. as compared to 7% the same time last year, IDC said.

-By Ian Sherr, Dow Jones Newswires; 415-439-6455; ian.sherr@dowjones.com

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