PC Outlook Takes Trip to Dog-Town but Hope Remains
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For the first time in 11 years, worldwide shipments of PC are set to decline in 2012, according to information from analytic provider IHS.
The total PC market in 2012 is expected to contract by 1.2 percent to 348.7 million units, down from 352.8 million in 2011. This would mark the industry's largest decline is since 2001, and dash early hopes for a 2012 rebound.
"There was great hope through the first half that 2012 would prove to be a rebound year for the PC market," said Craig Stice, senior principal analyst for computer systems at IHS. "Now three quarters through the year, the usual boost from the back-to-school season appears to be a bust, and both AMD (NYSE: AMD) and Intel’s (Nasdaq: INTC) third-quarter outlooks appear to be flat to down. Optimism has vanished."
There are signs that a strong rebound could still occur in 2013. While IHS has reduced its forecast for them, the new ultrabooks and other ultrathin notebook computers remain viable products with the potential to redraw the PC landscape, and the addition of Windows 8 to the mix could prove potent and irresistible to consumers, noted the IHS report.
It remains to be seen whether or not the newly configured PCs can match the allure of the growing smartphone and tablet market, but one thing is for sure, the boring old PC industry is about to get a shot of interesting.
The total PC market in 2012 is expected to contract by 1.2 percent to 348.7 million units, down from 352.8 million in 2011. This would mark the industry's largest decline is since 2001, and dash early hopes for a 2012 rebound.
"There was great hope through the first half that 2012 would prove to be a rebound year for the PC market," said Craig Stice, senior principal analyst for computer systems at IHS. "Now three quarters through the year, the usual boost from the back-to-school season appears to be a bust, and both AMD (NYSE: AMD) and Intel’s (Nasdaq: INTC) third-quarter outlooks appear to be flat to down. Optimism has vanished."
There are signs that a strong rebound could still occur in 2013. While IHS has reduced its forecast for them, the new ultrabooks and other ultrathin notebook computers remain viable products with the potential to redraw the PC landscape, and the addition of Windows 8 to the mix could prove potent and irresistible to consumers, noted the IHS report.
It remains to be seen whether or not the newly configured PCs can match the allure of the growing smartphone and tablet market, but one thing is for sure, the boring old PC industry is about to get a shot of interesting.
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