The global PC market is expected to grow by 11% this year but the growth rate could come down to a single digit, says Gartner, a leading research company.
According to Gartner, a leading market research company, PC shipment is likely to increase from 264 Million Units in 2007 to 293 Million Units this year, an increase of 11%, but economic problems could alter the growth rate from double digit to single digit, as reported by InformationWeek.
Gartner also revealed that there would be low PC penetration in all parts of the world, including Africa, Latin America and Asia. Apparently, China has low PC penetration with just 111 computers on every 1,000 people whereas the US has 850 PCs per 1,000 people. The disparity is more pronounced in the professional field than in home.
According to the industry experts at Gartner, the slow growth in PC market across the world this year can be attributed to soaring oil prices, economic slowdown in major countries (including the US and China), and poor replacement cycle. Moreover, sluggish GDP growth also impacts the PC shipments through reduction in consumer incomes and business gains. Other reason for less shipment could be economic slowdown in emerging countries, particularly China where economy may go down after Olympic Games.
George Shiffler, Research Director, Gartner, said, “Also, there is an incentive downside in the market: a lot of companies are planning to migrate to Vista in 2009. It's still in the planning stage, but people may question whether you replace a 4-year-old desktop now or hold on and move to Vista in 2009. If you migrate after the fact it might be more costly but may be a risk worth taking”, as reported by CRN on March 26, 2008.
However, the demand for laptop and mobile computers could bounce back and provide some relief to the PC market. Industry experts at Gartner view technological advancement and improvement in design as the factors that curtailed the manufacturing costs and improved the value proposition.
According to a Research Analyst at RNCOS, “Worldwide PC market is experiencing slow growth owing to the economic slowdown in developing and developed countries. However, technological advancements and new designs could revive the PC market. Hence, PC manufacturers should come up with new designs and technologies to make the market attractive for customers.”
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