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Global PC sales wobble


Cape Town, 18 Sep 2006

Worldwide PC shipment growth declined during the second quarter of this year and research firms Gartner and International Data Corporation (IDC) have mixed feelings about the future.

According to Gartner`s preliminary forecasts, worldwide PC shipments are on pace to total 233.7 million units in 2006, a 10.5% increase from 2005. However worldwide PC revenue is expected to reach $198.3 billion, a 2.5% decline.

Rival research firm IDC says the worldwide PC market continued to expand at a healthy pace in the second quarter of 2006, although growth was slower than in recent quarters. Total PC shipments exceeded 52 million units and growth was 9.8% for the quarter, 0.6% behind expectations.

Despite the slower second quarter, IDC expects the second half of 2006 to be strong enough to maintain double-digit growth for the year.

PC manufacturers, says Gartner, will face increasing competition during the coming December holiday season from consumer electronics manufacturers, and the delay by Microsoft in shipping the new Vista operating system will also have an influence.

"Vista`s absence will definitely make it harder for PC vendors to maintain consumer interest in PCs without cutting prices," says George Shiffler, research director for Gartner Dataquest`s Client Platforms research programme.

PCs will face increasing price pressures that may help spur purchases, Gartner says, especially in the emerging markets.

IDC says mature regions, like the US, Western Europe and Japan, are exhibiting more conservative growth trends, and developing regions are not only growing faster, but exceeding expectations.

Both firms say PC manufacturers will be competing for greater consumer wallet share in the coming months. Competition will come from liquid crystal display television sets and, IDC says, consumers will be purchasing more and more laptops.

The Gartner analysts say even mobile phone sales will be influencing the sales of PCs in the coming year.

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