PC growth still strong

PC growth still strong

GROWTH in PC sales will slow over the next two years but the market is still far from stagnant.

According to IDC’s worldwide quarterly PC tracker, growth has already slowed — falling from 10.1% last November to 9.7%.

Liam Gunson, hardware analyst IDC New Zealand, says the local decline is due to a typical growth cycle.

“From 2003 to 2004 the market went through a replacement cycle driven by the high New Zealand dollar and post Y2K. Now that refresh cycle is drawing to a close because the market cannot sustain growth,” he says.

Gunson anticipates the market to remain steady during 2006 before picking up again the following year.

Yet the PC tracking report isn’t all doom and gloom.

Analysts expect to see continued strength in the portables and emerging markets and growth is predicted to remain above 8% through to 2009.

Gunson says the next two years will see an increase in aggressive tactics between the large PC vendors fighting over new business.

And he has advice for worried resellers.

“Resellers could begin to focus on certain areas of the market — selling to small business, for instance — and look at providing services rather than hardware.”

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