Feeds

Hopes of PC market recovery dashed

Dell close to overtaking HP in becalmed sector

  • alert
  • submit to reddit

The essential guide to IT transformation

Hopes of a recovery in the PC market have been dashed; IDC reports that worldwide PC shipments were down 0.5% from 31.2 million in Q2 2001 to 31.1 million in the second quarter this year.

It's the fifth consecutive decline in PC shipments, the analysts note.

IDC had predicted that Q2 shipments would rise by 1.3 per cent this quarter, and although the rate of decline has eased from a drop of 7.8 per cent in Q1, this is cold comfort for the beleaguered system builders.

The consumer market is "becalmed", IDC reports, with the introduction of Windows XP and Intel's Pentium 4 failing to stimulate sales into Q2. The commercial faired better, but only just.

HP, thanks to the Compaq merger, has assumed top spot in the PC market, but with combined sales down 16.5 per cent on Q2 2002 against an overall decline of 0.5 per cent, IDC reports that HP will need to focus on its PC business to remain ahead of Dell, which enjoys a share of 14.8 per cent of the market compared to HP's 15.1 per cent.

IDC reports that Dell's US shipments increased by more than 19 per cent in the second quarter, as the company took share from competitors - particularly in the consumer and education segments. Overall Dell shipped 4,600,000 PCs, up 15.5 per cent on the 3,983,000 units it moved in Q2 2001.

IBM's sales held up in the US, but it lost ground internationally as businesses (its main market) continued to defer spending.

Fujitsu also suffered from a weak commercial market. Meanwhile, Gateway "continues to suffer from a cautious consumer segment and fierce competition from rivals", IDC notes.

Despite a loss of momentum in flat panel iMac's, Apple's total shipments increased slightly in a tough U.S. market. Still, with shipments declining in Japan and Western Europe, the company was more cautious about its prospects for the third quarter despite the traditional education spending.

The World Cup effect

Second tier vendors were worst effected by difficult market conditions during but sales by white box vendors held up. One of the few bright spots in the market was notepad sales in Europe, while consumer sales in Asia feel because consumers were distracted by the World Cup, IDC notes.

The "World Cup" effect, where business and consumers put off spending on IT to concentrate on the footy was also noted during France 98, and blamed by some enterprise vendors in Europe for failing to meet US defined targets.

But we digress.

IDC hopes for improvements ahead, with sales to the education sector and traditional holiday sales giving hopes that its forecast of single digit growth in 2002 will be met, but the fragile state of the economy and "uncertain political outlook" remain concerns.

"The fundamental drivers of a recovery are still in place - increasing economic stability if not improvement, an ageing installed base, and continuing technology development - however, both consumers and businesses are still very cautious about investing, said Loren Loverde, director of IDC's Worldwide Quarterly PC Tracker.

"We still expect seasonal improvement in the second half, although the current results underscore the fragile state of the market," he added. ®

External Links

IDC's market survey (Q2 2002)

Secure remote control for conventional and virtual desktops

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
Kaspersky backpedals on 'done nothing wrong, nothing to fear' blather
Founder (and internet passport fan) now says privacy is precious
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Facebook, Google and Instagram 'worse than drugs' says Miley Cyrus
Italian boffins agree with popette's theory that haters are the real wrecking balls
BBC: We're going to slip CODING into kids' TV
Pureed-carrot-in-ice cream C++ surprise
Twitter: La la la, we have not heard of any NUDE JLaw, Upton SELFIES
If there are any on our site it is not our fault as we are not a PUBLISHER
Sit tight, fanbois. Apple's '$400' wearable release slips into early 2015
Sources: time to put in plenty of clock-watching for' iWatch
Facebook to let stalkers unearth buried posts with mobe search
Prepare to HAUNT your pal's back catalogue
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Advanced data protection for your virtualized environments
Find a natural fit for optimizing protection for the often resource-constrained data protection process found in virtual environments.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.