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RealTime IT News

Long Live The PC Market?

The PC market is far from dead. Though earlier predictions indicated otherwise, both Gartner and IDC have reported higher-than-expected PC shipments in the second quarter of 2005.

Gartner has reported that worldwide PC shipments grew by 14.8 percent in the second quarter for a total of 48.9 million units. IDC has reported that shipments grew by 16.6 percent to 46.6 million units worldwide.

U.S.-based shipments were also on the rise, with Gartner reporting a 10 percent second-quarter increase over the previous year to a total of 15.6 million units. IDC reported 14.7 million units shipped in the U.S., representing a year-over-year growth of 11.7 percent.

The second-quarter number exceeded both Gartner and IDC's earlier forecasts for PC shipments.

IDC's second-quarter worldwide PC shipment figure exceeds its May forecast for the quarter by more than 4 percent. U.S.-based shipments were 0.1 percent higher than IDC's May forecast of 11.6 percent for second quarter shipments.

Gartner's second quarter worldwide PC shipment figures beat their own earlier forecasts by 2 percentage points. In May Gartner raised its PC forecast for worldwide PC shipments. In March, IDC forecast that 2005's PC shipments wouldn't meet expectations.

Both IDC and Gartner noted that mobile PC adoption was one of the key drivers of growth. Low-cost systems and aggressive price cutting were also cited by the research firms as demand drivers.

"This kind of growth in the PC market is just amazing," said Loren Loverde, director of IDC's Worldwide Quarterly PC Tracker, in a statement. "At some point we expect the flood of consumer and portable demand to let up, but so far falling prices and demand across regions and market segments continues to support growth.

"Such consistent growth raises the prospect that the recent replacement wave is being supplanted by growing adoption that could sustain higher growth into the future."

Dell led all PC vendors in both worldwide and U.S. shipments in IDC and Gartner reports.

IDC reported Dell's year-over-year, second-quarter growth at 23.7 percent worldwide with 9 million units shipped and a 19.3 percent market share.

Gartner reported an identical worldwide growth for Dell, with slightly lower shipments at 8.8 million units representing a 17.9 percent market share.

Dell's U.S. dominance is even more pronounced. Gartner pegged the company as having a 32 percent market share on 16.1 percent year over year growth to 5 million units. IDC reported Dell as having a 34.7 percent market share with a growth of 16.3 percent and 5.1 million units shipped.

HP held the second spot worldwide with IDC reporting 16.3 percent growth (15.6 percent market share) and Gartner reporting 16.5 percent (14.6 percent market share).

Lenovo came in third worldwide with a 7.7 percent growth rate reported by IDC, giving it a 7.6 percent market share. Gartner also had Lenovo in third, though it reported a growth rate of 11 percent for a market share of 7.2 percent.

In the U.S. however, Lenovo had a negative 9.1 percent growth rate according to Garter and a negative 8.4 percent growth rate in IDC's measure.

Apple computer had the highest growth rate of PC vendors in the U.S. according to IDC with an increase of 33 percent on a year over year basis (658,000 units) for the second quarter and 31.4 percent (663,000 units) according to Gartner.