Skip to main content

Demand for Media Tablets Disrupts the PC Market

Worldwide personal computer (PC) shipments increased by 3.6 percent in the third quarter of 2011 (3Q11) compared to the same quarter in 2010, according to the latest market study by International Data Corporation (IDC).

The results are up slightly from the 2.7 percenet growth experienced in 2Q11, and just below IDC's August projections for 4.5 percent growth in the quarter.

The Americas and EMEA were slightly below expectations while the Asia-Pacific markets were slightly ahead. The market continues to struggle as consumer discretionary income is diverted to other areas and business spending remains depressed in light of other priorities and a potential double-dip recession.

"For the moment, PCs have taken a backseat to a range of other devices competing for shrinking consumer and business budgets," said Jay Chou, senior research analyst at IDC.

While growth is expected to stay in mid-single digits in the fourth quarter, IDC expects to see faster growth in 2012 and beyond -- based on easier comparisons and refreshed PC offerings, as the industry better addresses the evolving usage models by integrating more of the features in ultra mobile devices (UMD).

Most vendors continue to struggle with the slow market environment and product changes. Although media tablets and other devices won't likely replace PCs, questions on how products will evolve, and consumer interest in these and other emerging categories are providing a distraction.

And while price remains critical, many users are delaying PC purchases for the moment. Still, there are opportunities, as demonstrated by Lenovo's gains, and IDC expect PCs to find stronger demand in the coming years.

"The U.S. market came in about flat as expected, but failed to generate positive momentum given the state of saturation and lack of incentives for consumers to upgrade. Other inhibitors included the poor economic environment and, to a certain extent, Apple iPad cannibalization," said David Daoud, IDC's Personal Computing Research Director.

As we approach the holiday season, the opportunity for low single-digit growth is real, but mostly as a result of poor market conditions last year, as opposed to a recovery in demand. IDC's Worldwide Quarterly PC Tracker gathers PC market data in over 80 countries by vendor, form factor, brand, processor brand and speed, sales channel and user segment.

Popular posts from this blog

How WLAN Transforms Industrial Automation

The industrial sector is on the eve of a wireless transformation, driven by an urgent demand for greater network capacity, reliability, and deterministic performance. Historically, manufacturers and mission-critical operations have relied on wired networks — favoring their predictability — because spectrum congestion in legacy 2.4GHz and 5GHz bands limited confidence in wireless for operational technology (OT) environments. However, with the introduction and rapid adoption of the 6GHz spectrum, compounded by significant advances in Wi-Fi standards, industrial facilities are now poised to embrace wireless LANs as the backbone for automation and digital innovation. Industrial WLAN Market Development Recent research from ABI Research forecasts that over 70 percent of industrial-grade wireless LAN access points (WLAN APs) shipped in 2030 will support the 6GHz band. This is a leap from 2 percent in 2023, highlighting a rapid and profound technological shift. The market for ruggedized indust...