2011 PC Market Growth Slashed From 7.1% To 4.2% by IDC

International Data Corp (IDC) , a Market research firm  has slashed its forecast for 2011 PC shipment growth to 4.2% from 7.2% owing to multiple of factors. They include declining Q1 2011 shipments, challenging economic outlook and maturity of the PC market in the developed region. The developing world will provide most of the growth. Also, there is a concern that the tablet is displacing PC.


Consumers are recognizing the value of owning and using multiple intelligent devices and because they already own PCs, they’re now adding smartphones, media tablets, and eReaders to their device collections,” said Bob O’Donnell, IDC’s vice president of clients and displays.


Many analysts have been reducing their 2011 forecasts for PC.   GarTner has since reduced its estimate to 10.5%. Yet, Intel remains optimistic about the PC growth, but is realistic that the growth will not be high as it used to be.


High unemployment  remains a key factor that is affecting how consumers spend. With the job market static, spending is watched very well by consumers. Unless the economy improves, most consumers will not like to spend and invest in PC.


The events in Japan can actually spark PC market depending on how many will be replaced after the crises. Q1 2011 PC shipments were down 1.1% from 2010, with a decline of 4.4% in consumer shipments that was only partially offset by 3% growth in commercial segments, according to IDC. The decline in consumer shipments was particularly acute in mature regions, with double-digit declines in Western Europe, the U.S. and Canada, according to IDC. Asia, Latin America and Africa will lead the growth as most people are still buying their first PCs as their economic outlooks improve.


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