"Worst Drop On Record"

Written by Oonagh Reidy     05/03/2014 | 15:07 | Category: DESKTOP PCS

But there's worst to come for PC market, warn analysts

PC shipments fell by 10% in 2013, as tablets and smartphones occupy consumers hearts and minds - the most severe contraction on record, analysts IDC said today.

However, there is worse to come, meaning bad news for Acer, Dell, HP and Co.   

IDC now expects shipments of desktops and notebooks to fall by -6% in 2014 and decline through 2018. 

This forecast comes despite the last quarter of 2013 (Oct-Dec), which saw the market perform slightly better than projected, driven by short-term factors like a slight rise in XP replacements and is not expected to last long.

So what's to blame? 

Conservative expectations for touch capable PCs, migration off Windows XP, continued pressure from tablets and smartphones have all further depressed expectations for the already struggling PC market. 

Even demand for computers in emerging markets like Asia is fading, and set to drop 8% this year. 

"Emerging markets used to be a core driver of the PC market, as rising penetration among large populations boosted overall growth," said Loren Loverde, IDC PC Tracker. 

Emerging regions are more affected by a weak economic environment as well as significant shifts in technology buying priorities. But these regions to recover perform better than mature regions, but growth is expected to stabilize near zero percent.

2014 will remain a challenging year for PC vendors in Asia as a cautious economic outlook means consumers will prioritize device purchases. 

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