Skip to main content

Why Global PC Shipments Will Continue to Decline

Several factors contributed to the latest contraction in the worldwide PC market. Global PC shipments declined 3.2 percent during the first quarter of 2011 -- compared to the same time last year, according to the latest market study by International Data Corporation (IDC).

In contrast, IDC expected a mere 1.5 percent growth in shipments. Clearly, a spike in fuel and commodity prices and the disruptions in Japan added to the industry problems, further dampening a market struggling to maintain momentum.

The PC market showed clear indications that frugality, combined with a shift of focus, will be the norm for the time being. Mature regions are more focused on necessary replacements, as few compelling reasons were present to buy secondary PCs.

Emerging markets fared better due to lower saturation rates, but also slowed somewhat with Asia-Pacific (excluding Japan) slowing to a 5.6 percent growth and China continues to slow after experiencing high growth in 2010.

"While the consequences of events in the Middle East and Japan remain unclear, these will surely be factors that will influence short term market performance for 2011," said Jay Chou, senior research analyst with IDC.

Good-enough computing has become a reality, driving sales of Mini Notebooks and now Media Tablets. Macroeconomic forces can explain some of the PC business transition, but PC vendors must now deliver a compelling user experience that will justify new spending.

The U.S. and worldwide PC market continues to work through a difficult period that is expected to continue into the next quarter, but may start to improve in the second half of the year, according to IDC's assessment.

Slower than expected commercial growth in the first quarter failed to offset the ongoing challenges in the consumer market. While some of the decline may be due demand for media tablets, extended PC lifetimes and the lack of compelling new PC experiences played equally significant roles.

Popular posts from this blog

AI Supercycle: Server Market Growth Surge

The worldwide server market has entered a new phase defined almost entirely by artificial intelligence (AI) infrastructure economics rather than traditional enterprise refresh cycles.   The latest market data shows robust growth and a structural shift in where value is created, who captures it, and which architectures are setting the pace for the next decade. IDC reports that worldwide server revenue reached a record $112.4 billion in the third quarter of 2025, representing a striking 61 percent year-over-year increase compared to the same quarter in 2024. For context, this means the market is adding tens of billions of dollars in incremental quarterly spend, driven overwhelmingly by AI and accelerated computing requirements.  IT Server Market Development Over the first three quarters of 2025, server revenue has already reached $314.2 billion, meaning the market has nearly doubled in size compared to 2024, underscoring how AI buildouts have compressed several years of exp...