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PC Market To Decline For Second Consecutive Year, Predicts IDC

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[Techtaffy Newsdesk]

Despite intense industry efforts to overcome market inertia, 2012 nonetheless ended on a sour note with global PC shipment volume shrinking 3.7% on the year, according to the IDC Worldwide Quarterly PC Tracker.

With limited initial traction from Windows 8 in the holiday season, and continued pressure from tablets, IDC now expects 2013 PC shipments to decline by 1.3% in 2013.

Disappointing holiday sales, an underwhelming reception to Windows 8, and continuing economic malaise that further crimped IT budgets marked the face of the market during the second half of 2012; leading to a year-on-year decline of 8.3% in fourth quarter shipments, the most substantial decline recorded for a holiday quarter.

Emerging market growth potential is declining, and coming closer to that of mature regions. 2012 marked the first year that emerging markets have seen a volume decline, and while 2013 will return to growth, it is projected at less than 1% and with modest, single-digit growth through 2017. For mature regions, 2013 will mark the third consecutive year of volume declines. IDC continues to expect limited growth in 2014 and 2015 with contracting volume in later years.

Although the PC industry had banked on Windows 8 and a more varied and less expensive offering of ultrathin notebooks to revive demand, efforts thus far have been disappointing. A lack of touchscreen components has contributed to a limited supply of touch-enabled Windows 8 models – being out of step with the touch focus of Windows 8, and appearing relatively expensive compared to other options.

Loren Loverde (Program vice president, Worldwide PC Trackers, IDC): The PC market is still looking for updated models to gain traction and demonstrate sufficient appeal to drive growth in a very competitive market.

Growth in emerging regions has slowed considerably, and PC demand is constrained, as buyers favor other devices for their mobility and convenience features.

The U.S. PC market struggled in 2012, culminating with a 6.5% year-on-year decrease in the fourth quarter and -7.6% growth for the full year. Market saturation, a tough economic environment and weakness across the board, and lack of momentum for Windows 8, which led to 2012 contraction, are expected to persist at least during the first half of 2013, according to IDC.

IDC expects the second half of 2013 to regain some marginal momentum partly as a rubber band effect from 2012, and largely thanks to the outcome of industry restructuring, better channel involvement, and potentially greater acceptance of Windows 8. A new refresh cycle momentum in the commercial segment driven by the end of Windows XP life support can also be anticipated.

[Image courtesy: Microsoft]
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