Good News From The PC Market

July 15, 2009

The personal computer market topped expectations in the second quarter as resilient consumers shopped for portables, and shipments to China and other Southeast Asian economies reversed course and grew.

The overall market continued to shrink during the three months. But the decline was smaller than anticipated and it gave some analysts hope the market would once again expand by the fourth quarter.

Research firms Gartner and IDC released quarterly numbers on Wednesday afternoon that offered similar market assessments. IDC said the global market fell 3.1 percent, or less than the 6.3 percent decline it expected. Gartner said the market slipped 5 percent, a better performance than the 9.8 percent drop it projected.

“The results can be interpreted as a small sign of a PC market recovery in terms of shipment volumes in some regions,” said Gartner principal analyst Mikako Kitagawa. Asia/Pacific and the U.S. came in better than forecast while weakness continued in Europe, Africa and the Middle East.

Hewlett-Packard widened its lead as the world’s largest PC vendor with almost 20 percent of the market. Dell saw shipments drop sharply, but held the number two spot with an almost 14 percent share.

Acer continued to rival Dell in size with its strategy of selling low-cost portables and netbooks. Toshiba also gained ground.

The two research firms offered differing views on Apple’s place in the U.S. market. Gartner said Apple advanced modestly to 8.7 percent of the market while IDC said Apple lost ground and held 7.6 percent of the U.S. market. Apple generally prices its machines above comparable Windows models.

Top worldwide PC vendors according to IDC

Top worldwide PC vendors according to IDC

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Posted by Mark Boslet

Optimistic Signs From The Personal Computer Market

June 11, 2009

It is hard to envision even a small rebound in the personal computer market given that consumer spending appears as weak as its been in decades.

However, forecasters at IDC say the worst of the global PC decline might be behind us and that optimism is building about growth toward the end of the year.

IDC sees a 3.2 percent decline in the PC market this year, but 7.4 percent growth in 2010.

IDC sees a 3.2 percent decline in the PC market this year, but 7.4 percent growth in 2010.

IDC now expects PC shipments to fall just 3.2 percent in 2009. They were down 6.8 percent in the first quarter.

This would be a welcome improvement.

“New product introductions coming this fall, including low-cost, thin-and-light consumer portables, low-cost Intel Atom-based all-in-ones, and, of course, Windows 7, should provide a spark that helps to push market towards positive shipment growth over the next 12 months,” said Vice President Bob O’Donnell.

Yet don’t look for fireworks. Rehabilitation will be slow. IDC sees a 7.4 percent rise in the market next year with only 0.8 percent growth in the U.S. followed by a more respectable 13.6 percent increase in 2011.

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Posted by Mark Boslet

Telcos Seen Playing A Bigger Role With Mobile PCs

June 2, 2009

As consumers becoming increasingly interested in buying PCs from third-party merchants (instead of directly from a Dell or Apple) an important new outlet for computers is expected to grow.

Direct PC marketers seen at a disadvantage

Direct PC marketers seen at a disadvantage

That outlet is the national and global telecom, where people already go to snap up mobile phones and cellular computer connections.

In a press release on Tuesday, Gartner said it expects that 80 percent of PCs will be bought indirectly, or from third-party merchants, in three years. Today about 74 percent of PCs are, which is up from 67 percent five years ago.

This is obviously not good news for Dell. Perhaps this is partly behind the 63 percent profit drop the company reported last week.

In any event, the trend could play to telecoms as they bundle mini-notebooks with 3G cellular access. Gartner said it anticipates companies will become much more active in the United States, Western Europe, Japan, Singapore and Taiwan.

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Posted by Mark Boslet

Chip Sales Rise In April From Better PC Market

June 1, 2009

Worldwide sales of semiconductors rose 6.4 percent in April in a sign of life for the beleaguered market.

The better-than-expected increase from March was the result of an improvement in end-product demand and a boost in inventory replenishment, according to the Semiconductor Industry Association.

In particular, the PC market has been stronger than predicted earlier this year, with consensus forecasts now projecting a 6 percent decline compared with the earlier forecasts for a 12 percent decline.

The cell phone market also appears more resilient. The outlook is for a 7 percent decline compared with earlier estimates for a 15 percent drop.

PCs and cell phones account for 60 percent of semiconductor consumption.

The SIA said April sales were $15.6 billion. They are still 25 percent below sales in the same month last year.

Sales still down 25 percent from last year, the Semiconuctor Industry Associagion says

Sales still down 25 percent from last year, the Semiconuctor Industry Associagion says

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Posted by Mark Boslet

Intel Sees Signs Of A Bottom In The PC Market Slide

April 14, 2009

Wall Street shrugged off Intel’s first-quarter results because of its lackluster forecast for revenue and margins to be flat in the second quarter.

Server chip sales have held up well, says Intel

Server chip sales have held up well, says Intel

But Intel offered some good news Tuesday that investors and the industry shouldn’t ignore. It said it sees an end to the slide in the personal computer market – with factory volume perhaps returning to normal by the end of the year.

“We are seeing signs that a bottom in the PC market has been reach,” said CEO Paul Otellini on a conference call. “I believe the worst is behind us” in terms of rising inventories.

Otellini’s upbeat outlook is not a stretch given the present state of the economy. In recent weeks, early signs of stability have been reported in industries as varied as retailing, automotive manufacturing, even home building.

Otellini said that while business purchases remain weak, consumer buying as rebounded and the strength of demand increases as the first quarter progressed.
By the end of the quarter, Intel’s factories were humming at faster than anticipated pace, and by the end of the year, typical seasonal patterns may return to the market, he said, referring to the back-to-school and holiday buying periods.

In fact, the company worries it may not have enough manufacturing capacity come December. What a change a couple months make.

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Posted by Mark Boslet

Nvidia Is Latest Company To Point At Sharp Drop In PC Market

January 13, 2009

Nvidia said it fourth-quarter sales will be well below expectations because of weakening demand for its graphics chips, which are installed inside PCs.

Revenue from graphics chips to fall 40% to 50%, Nvidia says

Revenue from graphics chips to fall 40% to 50%, Nvidia says

The chip maker said sales for the three-month period will fall 40 percent to 50 percent from the third quarter. The company had projected about a 5 percent decline in November.

In a press release, the company said that weak demand led its customers to reduce inventories of graphics products.

Analysts had been expecting sales of $805.5 million from the company, but will now have to make due with $448.9 million to $538.6 million.

Other suppliers of components to PCs are feeling the pinch of a tight market as well, including processor maker Intel.

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Posted by Mark Boslet

Notebooks Outpace Desktop PCs For First Time In Third Quarter

December 23, 2008

Marking a milestone in the history of computing, vendors shipped more notebook computers in the third quarter than they did desktop machines.

Notebook shipments up 40% in third quarter

Notebook shipments up 40% in third quarter

The momentum has been increasing behind notebooks for several years. So the crossover was not a surprise, said Matthew Wilkins, principal analyst at iSuppli. The notebook is no longer a tool for the business workers; it is “a computer for everyman,” Wilkins said.

According to iSuppli, notebook shipments rose nearly 40 percent to reach 38.6 million units. Desktop shipments declined by 1.3 percent to 38.5 million.

The popularity of notebooks increased noticeably with the advent of wireless Wi-Fi connections and the ability of companies, such as Intel, to put more powerful chips into the compact package required for these mobile computers. Battery life also improved as processors became more efficient and computer design changed to cut wasted energy.

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Posted by Mark Boslet

H-P Not Seeing What Intel Is Seeing (In The PC Market)

November 24, 2008

The slowdown in personal computer sales that forced Intel to cut its sales outlook is not showing up in Hewlett-Packard’s business, CEO Mark Hurd said Monday.

H-Ps notebook sales rose 21 percent

H-P's notebook sales rose 21 percent

“We saw some things that were just different in our numbers,” H-P chief Hurd said on an earning conference call.

The company’s fiscal fourth-quarter PC sales grew 10 percent while shipments were up 19 percent. Notebooks revenue expanded a strong 21 percent, compensating for desktop sales that fell 2 percent.

In terms of pricing, “we didn’t see extraordinary changes” in the market place, Hurd said.

Intel earlier this month slashed its financial outlook for the remainder of the year citing significantly weaker demand in all its markets around the world.

“We are aware of what they are seeing and what Microsoft is seeing,” Hurd said. He argued H-P was bucking the trend and gaining share.

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Posted by Mark Boslet

Outlook For Personal Computer Market Slashed

November 20, 2008

The PC market will grow only 4.3 percent in 2009 – an outlook iSuppli said Wednesday it cut by nearly two-third.

The research firm had previously forecast 11.9 percent worldwide growth in shipments. The global economic landscape has changed dramatically and financial turmoil means there is less money to spend on computers, said Matthew Wilkins, principal analyst.

ISuppli said it sees desktop PC shipments declining about 5 percent and notebooks growing about 15 percent.

The firm also sees growth resuming in 2010. It projects the market will be up 7.1 percent. It had previously anticipated 2010 growth of 9.4 percent.

The market had shown annual growth of about 10 percent over the past five years.

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Posted by Mark Boslet

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