IDC: 2005 PC shipments improving

IDC: 2005 PC shipments improving

PC makers aren't enjoying as much growth as last year, but market researcher IDC says shipments in 2005 should finish well above expectations for the year.

Strong consumer demand in Europe and Asia should allow PC vendors to ship around 110 million units in the last six months of the year, IDC said. Should that come to pass, PC vendors would have shipped 204.6 million units for the full year, a 14.1 percent improvement over 2004 shipment totals.

In 2004, PC vendors improved their worldwide shipment totals by 15.3 percent over the previous year. Earlier this year, IDC forecast that full-year growth in 2005 would ease back to 11.4 percent as both businesses and home buyers reached the end of a three year spending spree on PCs. The growth in worldwide shipments to corporations is still expected to fall, from 16.3 percent in 2004 to a forecast of 11.7 percent for 2005.

However, while the US market continues to mature, IDC underestimated the appetite of PC purchasers in Western Europe and Asia when making that forecast earlier this year. Worldwide growth in consumer PC purchases is expected to be 18.3 percent, up from 13.5 percent last year, even though growth in consumer shipments to the U.S. should fall, from 8.9 percent last year to a forecast of 7.3 percent this year.

Notebooks PCs continue to drive much of the worldwide demand for new systems, even in markets such as the U.S. and Japan where notebook adoption is already very high, IDC said. Corporate IT departments had led the trend toward notebooks over the past few years, but home users are now snapping up portable PCs at a faster rate, according to IDC's data.

One sour note for vendors, if not purchasers, is that the growth in shipment value is not rising nearly as quickly as the shipments themselves, IDC said. Pricing is extremely competitive at the lower end of the PC market especially in the second half of the year, when many students around the world head back to school and gift-givers start making out their holiday season shopping lists.

IDC is still predicting that growth around the world in 2006 will slip just below 10 percent.

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