PC Sales to Suffer First Decline in Eight Years

[aruljothi]

PC sales worldwide are expected to fall 4 percent this year as businesses cut back on IT spending and consumers, as they move towards more mobile devices, buy fewer desktops says research firm iSuppli. And not since the dot-com bust of 2001 are PC sales expected to be so slow, says the firm.

"An annual decline in unit shipments is highly unusual in the PC market," says Matthew Wilkins, principal analyst, for iSuppli. "Even in weak years, PC unit shipments typically rise by single-digit percentages."

PC sales are expected to fall to 287.3 million units this year from 299.2 million in 2008. iSuppli had earlier forecast a 0.7 percent growth for the year. In 2001, PC sales had fallen 5.1 percent worldwide.

Poor sales of desktop computers is taking its toll on the overall industry. Desktop sales are expected to fall 18.1 percent this year to 124.4 million from 151.9 million in 2008. Entry-level servers, which iSuppli includes in its definition of PCs, also are expected to suffer a decline, says the firm.

And in news that should surprise no one, notebook sales are expected to grow 11.7 percent to 155.9 million units. Notebook sales will exceed those of desktops on an annual basis for the first time ever in 2009, says iSuppli.

"Mobility is winning out in the PC market," says Wilkins.