PC sales expected to decline
It would be their first drop in more than a decade.
After 11 years of growth, sales of PCs -- including notebooks, netbooks and desktops -- are expected to decline.
This revelation comes from three different researchers. In a report by IHS iSuppli (IHS), the researcher showed that worldwide PC shipments will contract this year by 1.2% to 348.7 million units. In 2011, 352.8 million units were shipped.
"There was great hope through the first half that 2012 would prove to be a rebound year for the PC market," Craig Stice, a senior principal analyst for computer systems at IHS, said in a company release. "Now three quarters through the year, the usual boost from the back-to-school season appears to be a bust, and both AMD and Intel's third-quarter outlooks appear to be flat to down. Optimism has vanished and turned to doubt, and the industry is now training its sights on 2013 to deliver the hoped-for rebound. All this is setting the PC market up for its first annual decline since the dot-com bust year of 2001."
Gartner concurred with that assessment.
"Retailers were conservative in placing orders as they responded to weak back-to-school sales," said Mikako Kitagawa, a principal analyst at Gartner. "By the end of September, retailers were focused on clearing out inventory in advance of the Windows 8 launch later this month. On the professional side, there was minimum impact from Windows 8 in the quarter because the professional market will not adopt Windows 8 PCs immediately after the release."
"PCs are going through a severe slump," added Jay Chou, a senior research analyst with IDC's Worldwide PC Tracker. "The industry had already weathered a rough second quarter, and now the third quarter was even worse. A weak global economy as well as questions about PC market saturation and delayed replacement cycles are certainly a factor, but the hard question of what is the 'it' product for PCs remains unanswered. While Ultrabook prices have come down a little, there are still some significant challenges that will greet Windows 8 in the coming quarter."
Dell (DELL) and Hewlett-Packard (HPQ) are among the biggest companies enduring declines. In the third quarter, Gartner said, HP declined by 16.4% worldwide, while Dell dropped 13.7%. In the United States, the declines were even greater.
IDC's numbers are nearly on par with Gartner's, but there is one exception: IDC's research shows that Apple declined by 7%.
IHS did not provide any details regarding how individual corporations are performing.
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Schools are supplying kids with iPads, even the teachers are using them, good for Apple, bad for Microsoft. I think that once this trend (schools with iPads) level off, then we'll see a stabilization of the PC market. I don't think the PC market will ever truly die. There isn't a laptop on the market that can compete with the raw power of a tower machine for heavy graphics and CPU loads.
Why not just use a tablet for it all. I can talk to my phone using my software. Why can't I talk through my tablet to someone through a VOIP (voice over internet protocal?). And, it's not a good answer to say - we have way to many PC's left to cell - oh sorry "sell."
And, is anyone ever to going to figure out that there was a suplus "at and around Y2K" as "us lawyers like to say," because thousands of new computers were bought, software was bought and it was not because Clinton's economic plan was so frigging sound! Talk about the Teflon president.
Oh, sorry I have to go "like" some Romney or Obama stuff on Facebook. Social Network indeed.
No doubt about it. People are using computers in different ways today than they did yesterday, and tomorrow will be different than today. People are gravitating towards tablets - and smart phones - but eventually, the way that people work with computers will be mostly invisble, though voice activation.
Companies that do not understand these basics will quickly become obsolete.
This is about a technology slump, nothing more, nothing less.
People upgrade thier old PCs because of newer and/or better technology. We havent seen anything really new since the 64 bit OS, which allowed us to run more RAM then before. Micro-chip technology is still moving foward, but most lay people dont understand it.
Also, people are starting to realize that if you take care of your PC, and upgrade the software, drivers, etc, you dont need to buy a new PC every 2 years.
And businesses, the real "consumer" in the PC market, are cutting costs and laying people off.
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The solid report comes a month after the retailer closed all of its Canadian operations.
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