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PC market to remain strong through 2005, says IDC

Posted: 21 Sep 2005 ?? ?Print Version ?Bookmark and Share


Persistent strong demand in international markets boosted second quarter growth in the worldwide PC market and has raised the expectation of market research company IDC for the PC market in the second half of 2005.

According to the latest forecast from IDC total PC shipments in the second half of 2005 are now expected to reach nearly 110 million, with growth of 12.9 percent. This is higher than the forecast given in May of 107.2 million units and growth of 10.4 percent.

The biggest drivers in the second half are likely to be the consumer segments in Western Europe, Central and Eastern Europe, Middle East and Africa, Latin America, and Canada with an important contribution from portable PCs. Consumer markets in other regions as well as the commercial segment will also contribute, IDC said. "We continue to see remarkable growth in the consumer segment and in emerging markets," said Loren Loverde, director of IDC's worldwide quarterly PC tracker service, in a statement. "Low prices combined with low penetration, recovering or growing economies, and general investment in technology continue to fuel rapid growth in these markets. While we expect the Euro to weaken against the dollar and PC growth rates to slow from recent quarters, we still anticipate strong growth for another couple quarters."

With the contribution of a strong second half of the year, IDC expects total PC shipments for 2005 to be 204.6 million units to give an annual growth of 14.1 percent - slightly below 15.3 percent growth achieved in 2004, but up from a May projection of 11.4 percent.

However, total shipment value is expected to rise only 5.8 percent to $211.6 billion for all of 2005 due to price attrition. For the period 2006 to 2008 PC shipments are expected to grow by roughly 9 percent per annum before slowing to 8.3 percent in 2009. Growth of shipment value is also expected to slow, although it should remain positive throughout the forecast.

"A combination of factors that include high crude oil prices, some component shortages, and limited decline in average prices will likely prevent the U.S. market from repeating its strong second quarter performance," said Bob O'Donnell, vice president Clients and Displays at IDC, in the same statement.

- Peter Clarke

EE Times

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