Gartner drops 2011 PC forecast with shift to tablets
Gartner drops worldwide PC shipment growth for 2011 to 3.8% from an earlier projection of 9.3%
IDG News Service - Gartner on Thursday sharply dropped its worldwide PC shipment growth forecast for this year and next, citing economic struggles and a market shift from PCs to devices like tablets.
Worldwide PC shipments will amount to roughly 364 million, a 3.8% increase compared to last year, Gartner said. That is a sharp drop from the firm's previous forecast of 9.3% growth, which was made in June before economic struggles heightened in mature markets such as U.S. and Europe.
Gartner also dropped its PC growth forecast for next year, but said the growth will be more respectable. PC shipments will grow by 10.9% in 2012 compared to this year, lower than the 12.8% previously projected by Gartner. Unit shipments will total 404 million.
Tablets are attaining more PC functionality, and that is affecting PC sales, Gartner said in a statement. Younger audiences are shunning PCs for tablets, and PC-reliant consumers and businesses are delaying upgrades in struggling economies.
With dropping sales and growing unit inventories, the PC business model is now under question, which has been highlighted by Hewlett-Packard, Gartner said. HP last month said it was looking to either sell or spin-off its PC unit to focus on its higher margin enterprise business. The dropping sales and razor-thin PC margins also hurt the revenue of Dell and Acer, though Lenovo recorded strong PC revenue growth because of strong sales in the home turf of China.
"Tablets have dramatically changed the dynamic of the PC market, and HP's decision to rethink its PC strategy simply highlights the pressure that PC vendors are under to adapt to the new dynamic or abandon the market," said George Shiffler, research director at Gartner.
Purchases of tablets such as Apple's iPad have grown quickly in recent quarters. Some analysts have said tablets would make PCs irrelevant, though others argue that the tablet market is still evolving, and that the PC will continue to survive for content and document creation.
Consumers are also tightening wallets and businesses are holding back PC purchases, especially in developed countries such as Europe and U.S., said Ranjit Atwal, also a research director at Gartner.
"Western Europe is not only struggling through excess PC inventory, but economic upheaval as well. U.S. consumer PC shipments were much weaker than expected in the second quarter, and indications are that back-to-school PC sales are disappointing," Atwal said.
- 15 Non-Certified IT Skills Growing in Demand
- How 19 Tech Titans Target Healthcare
- Twitter Suffering From Growing Pains (and Facebook Comparisons)
- Agile Comes to Data Integration
- Slideshow: 7 security mistakes people make with their mobile device
- iOS vs. Android: Which is more secure?
- 11 sure signs you've been hacked
- 4 Customers who never have to refresh their PCs again This paper illustrates a common theme: the combination of desktop virtualization and thin client computing helps organizations deliver an up-to-date user experience more...
- Mobile Devices: The New Thin Clients Get essential guidance for understanding the role thin clients plus virtual desktops play in the enterprise today.
- Taking Windows Mobile on Any Device Taking Windows applications mobile has many advantages, but the process of identifying a solution is complex. Learn how to solve this complex problem...
- PaaS - Powering a New Era of Business IT Why PaaS has suddenly become relevant and irresistible to many organizations. Dive into the opportunities and considerations associated with using PaaS from an...
- Redefine Your IT Operations: Remote Office IT Has Never Been Simpler Join us to see why PC Pro named Dell PowerEdge VRTX the "2013 Server of the Year." PowerEdge VRTX may be just what...
- Meg Whitman presents Unlocking IT with Big Data During this Web Event you will hear Meg Whitman, President and CEO, HP discuss HAVEn - the #1 Big Data platform, as well... All Hardware White Papers | Webcasts