
Netbooks bargain pricing is aggravating PC market woes
No recovery in sight for the PC industry.
Earlier this month, J.P. Morgan said it expects PC sales to decline 13.5 per cent in 2009.
Rival Morgan Stanley, now thinks the revenue drop will be closer to 24 per cent in revenues, 11 per cent in unit sold and 15 per cent in average selling prices (ASP). For 2010, the revenue decline will slow down to 3 per cent despite a 2% in units.
I’m sure some some obscure analyst firms will be quick to publish an even dire prediction!
Earlier Morgan Stanley analysis predicted “only” a 10 per cent drop. The investment bank analysts explained the revised outlook on the rise of the netbooks; sometimes more than 50% cheaper than a standard notebook.
The bank’s analysts see netbooks cannibalizing 10% of the traditional notebook market, reaching 20% of the entire notebook market in 2009, versus 9% last year. Netbook units could reach 22 million this year and 31 million net year, up from 10 million in 2008.
As a consequence, the bankers reduced their 2009 earning estimate for H-P and Dell.
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