Gartner projecting weaker second half for PC shipments

Slower-than-expected economic recovery in the U.S. and Europe are to blame

Gartner on Tuesday joined PC and chip makers in projecting a weaker-than-expected second half for worldwide PC shipments in light of slower economic recovery in mature markets.

The research company downgraded its forecast for PC shipments during the second half, saying it will grow by 15.3 percent, which is around 2 percent lower than the previous forecast.

Consumer and business demand for PCs will remain strong and continue to grow, but at slower rates relative to earlier expectations, said Ranjit Atwal, research director at Gartner.

"Consumers buoyed the PC market in 2009 as businesses delayed their purchases. The slow pace of economic recovery and austerity measures in Europe have made PC suppliers very cautious in 2010," Atwal said in a press release.

The slowdown also comes from uncertainty in economic recovery in the U.S., Atwal said.

PC shipments slowed dramatically by the middle of 2009 due to the recession, but started gaining steam in the second half of last year, according to industry surveys. PC shipments hit higher-than-expected growth rates in the first two quarters of this year, according to Gartner.

PC shipments during the first and second quarters grew partly due to robust economic recovery in the EMEA (Europe, Middle East and Africa) regions, according to Gartner.

PC and chip makers over the last month have projected a slowdown in consumer PC demand during the second half of the year. During an earnings call on Aug. 19, Dell's chief financial officer Brian Gladden said the company saw a weakening in demand for consumer PCs, but that he also expected the consumer business to gain steam during the holiday season in December.

Intel on Friday lowered its revenue forecast for the fiscal third quarter of 2010, citing lower-than-expected demand for consumer PCs in mature markets. Nvidia, which makes graphics cards that go into laptops and desktops, earlier this month said its second-quarter profitability was affected by higher memory prices and economic weakness in Europe and China, as consumers shifted to lower-priced graphics processing units and integrated graphics.

Join the newsletter!

Or
Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags hardware systemsAdvanced Micro Devices

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Agam Shah

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?