By Anna Prior
Market researcher International Data Corp. cut its outlook for
2012 growth in the worldwide PC market to a mere 0.9% as mid-year
shipments slow, according to its Worldwide Quarterly PC
Tracker.
In June, the firm had projected 5% growth. The tracker said 367
million PCs will ship into the market this year, up just a fraction
of a percent from 2011 and marking the second consecutive year of
growth below 2%.
The lowered forecast comes just days after both Hewlett-Packard
Co. (HPQ) and Dell Inc. (DELL) reported disappointing PC sales for
their latest quarters. In both cases, PC sales fell more steeply
than the companies' overall revenue. H-P said revenue from its PC
group slipped 10% from a year earlier, while Dell reported a 14%
drop.
Both companies rely heavily on PCs, with sales of the computers
accounting for nearly a third of H-P's revenue and half of Dell's.
That dependence has become a liability as PCs have shifted from
expensive luxuries to low-cost commodities. H-P last year went so
far as to announce a plan to spin off its PC business, although
Chief Executive Meg Whitman reversed course after she took charge
last September.
IDC now expects worldwide PC shipment growth will average 7.1%
from 2013-2016, down from the 8.4% compound annual growth rate
previously forecast for 2012-2016.
Contributing to the dropoff in growth is a slowdown in
Asia/Pacific, reducing the impact of emerging market growth. PC
growth in emerging markets is expected to be 2.5% in 2012, compared
with 11% last year.
Also adding to the slowdown is a decline in more mature regions
like the U.S. as consumers deal with weak economic conditions,
consider other products like tablets and smartphones, and wait to
see what new Windows 8 and Ultrabook products will look like.
"The U.S. market will remain depressed until Windows 8 products
hit the shelves in the fourth quarter of 2012," said David Daoud,
research director, personal computing at IDC. "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."
The third quarter back to school season is also proving to be
challenging despite prices dropping to their lowest levels, Mr.
Daoud said.
Though product updates later this year should revive PC growth,
the environment will be more competitive and there is likely to be
some confusion among buyers about new product features as well as
where they will get the most for their money, IDC said.
The firm provides market intelligence and advisory services for
the telecommunications and consumer technology markets.
Write to Anna Prior at anna.prior@dowjones.com
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