IDC Predicts Slow PC Market Demand as Financial Crisis Continues

According to a recent IDC report, which comes to take into account the current global financial crisis, it is estimated that the PC market growth will slow as the financial turmoil continues to spread to more regions worldwide.

 

IDC, a leading analysis firm, expects worldwide PC shipments to grow by just 3.8% over the upcoming year, with the shipment value expected to fall by 5.3%. The new predictions come to correct those made in the second quarter, where the growth in units was believed to settle around 13.7% and the shipment value to rest at 4.5%. Also, the research firm has now modified its outlook for full year 2008 and 2010, lowering it to 12.4% and 10.9%, respectively, with growth above 12% for 2011 and 2012.

 

“Portable PC adoption, falling prices, and system replacements remain the key drivers,” said Loren Loverde, director of IDC’s Worldwide Quarterly PC Tracker. “Low-cost mini notebooks will help volume but pressure margins and revenues. Consumer and commercial segments will be much more conservative in their purchases over the coming year or two, and while low prices will remain essential, they will not drive volumes as they did the past few years.”

 

IDC claims that the emerging markets in Latin America, Central Europe, the Middle East and Africa are among the most significantly affected in the short term, despite the fact that these regions were among the fastest growing markets over the past several years, a fact mostly explainable by the failing prices that helped new users acquire their first systems. However, the falling commodity prices, a rising dollar, and restricted credit have taken their toll on the consumer and distribution channel financing.

 

Also, the IDC predicts that more mature regions are expected to experience slower growth. For the upcoming year, volume growth has been lowered by 4% to 9%, for these regions. For shipments in the United States, the figure is expected to decline by almost 3% in 2009, while Japan and Canada will see low single-digit growth for a couple of years.