IC Insights Predicts That Tablets Will Drive PC Growth in 2011

IC Insights, reports that PC shipments will rise by 13% in 2011 compared to 2010. This is contained in its report


The surge in tablets and a 14% increase in sales of standard notebook computers (to 182 million units in 2011) is expected to drive up total portable PC shipments by 23% to 250 million systems worldwide this year, following 30% growth in 2010, says the new IC Market Drivers update, which is available to subscribers of the report. Portable computers are forecast to account for 62% of worldwide PC shipments in 2011, compared to 58% of the total in 2010 and just 31% in 2005. The shift to mobile personal computers continues to gain strength, and IC Insights now expects 72% of PCs sold in 2014 to be portable systems, with tablets accounting for 24% of the projected 557 million units sold that year–up from 5% of the 355 million PCs sold in 2010


The key driver for this upward trend in PC shipment could be traced to the developing world which is just starting to buy their own PCs now they can afford them. East Africa grew more than 70% last quarter and that trend is expected to continue.


While many have seen tablets as a killer in the PC business, what is happening is that both PC and tablet can co-exist because tablet cannot replace PC. That office productivity cannot be easily replaced by tablet – so people still need PC.


From IC Insights report, desktop PC will lose more share to laptop and netebooks. It will decrease from 45% in 2010 to  28% in 2014 while notebook will increase, marginally,  from 45% to 46%. The biggest gainer will be tablets that will move from 5% to 24%. Total PC sales will increase from 355m to 557m within the same period.


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