IDC: PC sales shrinking harder than anticipated

Research firm IDC reports PC sales are doing worse than previously anticipated. Previously, the company said PC sales would shrink by 7 percent in the first quarter as vendor and the supply chain work through the Windows 8 transition, but interim data suggests we could see a drop that approaches the double-digit mark in the first quarter and a mid-single-digit decline in the second quarter before recovering again in the second half of the year.

New monthly PC tracking in the world's top PC markets from International Data Corporation (IDC) reveals slower than expected growth in China during the first quarter of 2013 (1Q13). Although the slowdown is partially due to the timing of Chinese New Year and other expected factors, new budget cuts from the government as well as anti-corruption measures are slowing purchases more than expected. March should recover somewhat in China, but not enough to offset the weak February results.

With China now the top PC market worldwide, accounting for over 21% of global shipments in 2012, the slow February results and likely impact on March are expected to lower first quarter global PC shipments by roughly 2% from recent forecasts. Other monthly results indicate close-to-forecast market performance in Europe, Middle East and Africa (EMEA), Latin America, and Asia/Pacific (excluding Japan)(APeJ) while supply chain data indicate room for a slightly larger downward adjustment, according to the IDC Monthly PC Trackers.

"Based on our latest quarterly figures, global PC shipments were expected to decline by 7.7% in the first quarter as vendors and the supply chain work through the Windows 8 transition," said Loren Loverde, Program Vice President, Worldwide PC Trackers at IDC. "However, our February monthly data suggest that we could see a drop touching double-digits in the first quarter and a mid-single-digit decline in the second quarter before we see any recovery in the second half of the year. Even getting to positive growth in the second half of 2013 will take some attractive new PC designs and more competitive pricing relative to tablets and other products."

IDC's Monthly PC Trackers include IDC's Emerging Markets Monthly PC Tracker, which covers the top markets in APeJ, Central Europe, Middle East and Africa (CEMA) and Latin America, as well as the IDC-Context European Monthly PC Tracker, covering the top markets in Western Europe. The Monthly PC Trackers expand on IDC's Worldwide Quarterly PC Tracker by providing more frequent market data on the top markets. IDC's Worldwide Quarterly PC Tracker gathers PC market data in 80 countries by vendor, form factor, brand, processor brand and speed, sales channel and user segment. The research includes historical and forecast trend analysis as well as price band and installed base data.