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Analyst firm iSuppli slashed its personal computer (PC) growth forecast by nearly two-thirds as the global recession and down economy are expected to hurt PC makers Dell, HP, Acer and Lenovo. PC makers Dell, HP, Acer and Lenovo PC shipments are likely to feel the effects through 2010.
TAIPEI, Nov 21 (Reuters) - Data tracking firm iSuppli cut its growth forecast for the personal computer industry by nearly two-thirds as rapidly deteriorating conditions in the global market weaken demand and many major economies fall into recession.
iSuppli now expects global PC shipments to grow by only 4.3 percent in 2009, versus a previous forecast for 11.9 percent growth, the company said in a release late on Thursday.
It also pared back its growth forecast for 2010 to 7.1 percent from a previous 9.4 percent.
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"The result of the financial turmoil is less money to spend, and often that money is itself more expensive," iSuppli analyst Matthew Wilkins said in a statement.
"With less money to spend, application markets, like PCs, have been impacted."
iSuppli said it saw desktop PC shipments declining by about 5 percent next year, while notebook PCs could grow by about 15 percent on the back of low-cost notebooks, known as netbooks.
Netbooks, which have seen phenomenal growth in the past year, have propelled brands such as Acer (2353.TW) and its Taiwanese rival Asustek (2357.TW) to the top of the charts in western Europe.
But outside the netbook arena, broader industry prospects are less promising.
Some PC vendors have recently seen either their revenue or profits drop, with Dell's (DELL.O) revenue falling 3 percent in its latest reporting quarter while China's Lenovo (0992.HK) reported a 78 percent plunge in its quarterly profit early this month.
Still, other PC vendors continue to forecast strong growth, especially for brands focused on the higher-growth notebook sector. Acer said in late October it expected 2009 sales to climb 25-35 percent from this year, while Hewlett-Packard (HPQ.N) also said it saw a stronger-than-expected 2009. (Reporting by Kelvin Soh, Editing by Lincoln Feast)
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