Channel News and Analysis - Channel Insider
Empowering the next generation Channel
 

Bull’s Eye Awards
Nominations Open for Channel Insider 2009 Bull’s Eye Awards
Nominations are now open for the Channel Insider 2009 Bull’s Eye Awards, which recognize excellence in customer service, technology prowess, business acumen, channel leadership, communications and community building, and innovation among vendors, solution providers, distributors and channel services companies.



Sponsored Links
  • Control VM Sprawl, What You Don’t Know Can Hurt You
  • FREE Sophos Encryption Tool: Encrypt, compress and share files easily
  • LSI 6Gb/s Portfolio Expands to Include SATA+SAS HBAs
  • Reduce the cost of managing your mobile workers.
  • Find out 7 Ways to Drive Data Center Efficiency
  • SonicWALL breaks through network and email gridlock
  • Save up to 40% on calling costs with Avaya Aura™



  •  

    Gartner: PC Unit Sales to See Worst Decline in History

    in Channel News and Analysis


    Article Rating:starstarstarstarstar / 8
    Article Views: 4813

    Rate This Article:
    Add This Article To:
    Gartner is now forecasting a PC unit sales drop of 11.9 percent in 2009, nearly three times worse than the worst drop in history back in 2001. Netbooks seem to be the only bright spot as even standard PC notebooks look anemic for the year.

    The outlook for computer hardware sales—desktop PCs, servers and even notebooks—has grown bleaker for 2009 as demand appears to have dropped out of the market.

    Gartner is now forecasting a drop of 11.9 percent in 2009 from 2008, the sharpest unit decline in history. Before now, the sharpest decline had been in 2001 when unit shipments fell 3.2 percent. The current forecast decline is almost three times the previous worst decline.

    "The PC industry is facing extraordinary conditions as the global economy continues to weaken, users stretch PC lifetimes and PC suppliers grow increasingly cautious," says George Shiffler, research director at Gartner, in a formal statement issued upon the release of the new forecast.

    Click here to read about PC refresh cycles stretching to five years.

    Last week Bernstein Research lowered its PC forecast for 2009 and now expects unit shipments to decline 7.3 percent for the year. That's a significant deterioration from the firm's November forecast of a 4.9 percent growth rate for PCs in 2009.
    Resource Library:

    The recent earnings reports from Dell and Hewlett-Packard are cases in point. HP expects revenue for the full year to decline between 2 percent and 5 percent from the previous year, including the benefits of integrating its services acquisition EDS into the mix.

    As for Dell, Brian Gladden, the company's senior vice president and CFO, recently told analysts, "We cannot predict how deep or long this slowdown will be, though we’re planning on it to be protracted."

    Gartner says that both emerging and mature markets for PCs will suffer "unprecedented" market slowdowns.

    “Growth in both emerging and mature markets will be driven by similar dynamics even if the precise impacts vary somewhat," Schiffler says. "Slower GDP growth will generally weaken demand and slow new penetration, lengthening PC lifetimes will reduce replacements, and supplier caution will keep inventories at historic lows until confidence in a recovery eventually firms. The impact of reduced replacements will be especially acute in mature markets, where replacements are estimated to account for around 80 percent of shipments.”

    Netbooks offer the only bright spot in an otherwise bleak forecast, with unit sales expected at 21 million in 2009, up from 11.7 million in 2008. According to Gartner, PC unit growth will be substantially boosted by continued growth in mininotebook shipments; excluding mininotebooks, other mobile PC shipments will grow just 2.7 percent in 2009.

    But while this year looks to be a brutal one for PC sales, Gartner says that PC makers and their channel partners learned lessons during the 2001 dot-com bust and recession that have prepared them for survival in 2009. Those include the knowledge of how essential it is to invest in supply chains. And those investments give them better visibility into demand, says Gartner.






    Discuss Gartner: PC Unit Sales To See Worst Decline in History
     
    The language used for the associated email blast breeds deeper fear than necessary....
    >>> Post your comment now!
     

     
     
    >>> More Channel News and Analysis Articles          >>> More By Jessica Davis
     



     


    [ci] feeds
    XML
    Add Channel News, Product Reviews, Trends and Analysis to your RSS newsreader or My Yahoo!


    HTML PLAIN TEXT

    Keep on top of news for VARs and Resellers with CI's Weekly Newsletter and Alerts.

     


    CHANNEL RESOURCE CENTER
     
     
    Enterprise Mobility Zone
    The Enterprise Mobility Zone (EMZ) blog is a tool designed to help senior IT executives discuss, create and deploy next-generation mobile strategies in their organizations.
    Go beyond yesterday's tactical approach to mobility!
     
    Build A More Efficient Data Center
    Demands are growing but budgets are not. Solve your pressing IT issues using the resources you already have. Determine which technologies can help you drive efficiencies and how they are applied. Gain a quick ROI on new initiatives
    Find out how
    Let Enterprise TechBrief do the work for you. Aggregated content, tech news, product reviews, vendor updates, how-to’s—all you need to boost your efficiencies and cut costs, all from one place.
    enterprisetechbrief.com