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Analysts Now Believe PC Market Will Shrink This Year

By - Source: Forbes | B 20 comments

Financial analysts are closely watching the semiconductor market following Intel's recent and somewhat unexpected revenue warning.

Citigroup downgraded Intel, AMD and Nvidia and told clients that it now believes the PC market will contract in 2012.

The new assessment is a major turn for the PC market forecast and reflects a storm that is brewing above the industry. Analyst Glen Yeung said that less than 5 percent of the PC production in H2 2012 integrates touch screens and therefore "negates" the advantage of the new Windows 8 UI. Touchscreens remain expensive and Microsoft is also putting a high price tag on Windows RT, which requires notebook makers to bundle Office with the OS.

While he says that tablets will be impacting PC sales, there seems to be an indirect blame on Microsoft that it did not prepare hardware makers and its customers enough for the arrival of Windows 8. Windows 8 may sell just like any other Windows OS before and achieve record sales, but the new UI is Windows 8's Achilles' heel: If the hardware to support the UI is not available, and if the available hardware does not make sense in a user scenario, Windows 8 could fail.

Yeung reduced his stock forecast for Intel from $32 to $25.75, AMD from $6.50 to $4.25 and Nvidia from $16.50 to $15.25.

 

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  • 17 Hide
    yzfr1guy , September 14, 2012 2:16 PM
    blah blah blah
Other Comments
  • 17 Hide
    yzfr1guy , September 14, 2012 2:16 PM
    blah blah blah
  • 5 Hide
    lahawzel , September 14, 2012 2:20 PM
    Man, I remember when AMD stock was not $4, but $40. And this was only six years ago! What happened?!
  • 4 Hide
    slabbo , September 14, 2012 2:23 PM
    "Citigroup downgraded Intel, AMD and Nvidia and told clients that it now believes the PC market will contract in 2012."

    2012 is almost over! does it really take a huge corporation to analyse what already is 3/4 done?
  • 3 Hide
    mcd023 , September 14, 2012 3:05 PM
    don't they say that almost every year? Oh, I just purchased my first SSD! Yay! It's OCZ, so I'm hoping that it's not a DOA or messed up lol
  • 9 Hide
    Anonymous , September 14, 2012 3:31 PM
    Citi selling? I'm buying! These jag-off's almost destroyed their whole bank in 2009, the hell do they know? Wall street = crooks
  • 9 Hide
    RADIO_ACTIVE , September 14, 2012 3:32 PM
    I think these analysts brains have shrunk...
  • -5 Hide
    boju , September 14, 2012 3:39 PM
    The thruth is out there! I want to believe...

    In ALIENS!!!
  • 5 Hide
    CaedenV , September 14, 2012 4:02 PM
    slabbo"Citigroup downgraded Intel, AMD and Nvidia and told clients that it now believes the PC market will contract in 2012."2012 is almost over! does it really take a huge corporation to analyse what already is 3/4 done?

    Yes, because most of the sales for the year are done during back to school (which we are still in the middle of), and Christmas sales. The calendar year may be nearly over, but we are only ~1/2-1/3 through the total sales for the year.
  • 4 Hide
    ojas , September 14, 2012 4:03 PM
    Yeah whatever. I think these analyst's claims are more likely to find their way into the trendy journo's article, following which uninformed shareholders will start selling.

    It's all hype, one way or the other.

    AMD and Nvidia have volatile stocks anyway. Intel's far more stable, i don't expect this to happen.

    But then again, i'm not an "analyst" so no one will believe me :( 
  • 6 Hide
    husker , September 14, 2012 4:38 PM
    If I start predicting now that iPad sales will drop, and continue predicting it, eventually I will be right. Maybe I should be an industry analyst.
  • 2 Hide
    DroKing , September 14, 2012 4:53 PM
    Lol how can the market decrease when populations are ever increasing at rapid pace. These Analysts are truly clueless, somebody please fire them.
  • 6 Hide
    shahrooz , September 14, 2012 5:57 PM
    this guys is like PC enemy he post all stuff about PC dying, you mad? how can we continue to live without PC every innovation and invention is done by PC CAT, CAD, CAM etc. we need PCs damn.
  • 0 Hide
    gm0n3y , September 14, 2012 6:03 PM
    I don't understand what they define as a "PC". Desktop computers are definitely PCs. And I think they include laptops as well. But now they are saying they don't include tablets. What about Windows/x86 Intel tablets (they came out long before the iPad)? Are Macs included in PC sales? And if they are why isn't the iPad considered a PC?

    As long as the tech industry keeps growing (across all forms) then analysts just need to stop with all the doom and gloom predictions.
  • 1 Hide
    dextermat , September 14, 2012 6:48 PM
    Financial analysts = university brainwash
    just like specialist

  • 2 Hide
    ojas , September 14, 2012 7:10 PM
    gm0n3yI don't understand what they define as a "PC". Desktop computers are definitely PCs. And I think they include laptops as well. But now they are saying they don't include tablets. What about Windows/x86 Intel tablets (they came out long before the iPad)? Are Macs included in PC sales? And if they are why isn't the iPad considered a PC? As long as the tech industry keeps growing (across all forms) then analysts just need to stop with all the doom and gloom predictions.

    Lol don't you remember the "Apple is the largest PC seller if iPads are PCs" articles that keep popping up on tom's?
    That was IHS, though.
  • 4 Hide
    Netherscourge , September 14, 2012 7:50 PM
    IMO, "PC" means any desktop or laptop that runs Windows XP, Vista, 7 or 8 -OR- any desktop or laptop that runs MacOS.

    It Does NOT include "mobile" platforms, like Tablets, Smartphones, Media players (iPods) or Standalone Reading devices (Kindles).
  • 0 Hide
    leeashton , September 14, 2012 9:34 PM
    ojasLol don't you remember the "Apple is the largest PC seller if iPads are PCs" articles that keep popping up on tom's?That was IHS, though.

    I think you'll find samsung to be the lagest seller in tablets are PCs also
  • 0 Hide
    spartanmk2 , September 14, 2012 11:35 PM
    Did they pull this conclusion out of a fortune cookie?
  • 0 Hide
    ojas , September 15, 2012 5:37 PM
    NetherscourgeIMO, "PC" means any desktop or laptop that runs Windows XP, Vista, 7 or 8 -OR- any desktop or laptop that runs MacOS.It Does NOT include "mobile" platforms, like Tablets, Smartphones, Media players (iPods) or Standalone Reading devices (Kindles).

    Yeah. In fact i think anything with an SoC should NOT qualify as a PC (obviously i'm excluding servers, supercomputers and network hardware because we agree that they're not PCs), even if it's SoC is x86 based.

    Tablet PCs should be called just that, tablet PCs.

    Anything compatible with the IBM PC spec/design layout (monitor+chassis and components that are x86 compatible+keyboard/mouse) should be called a PC (Macs are now PCs).

    Everything else is simply another sub-category of "computer" (so is the PC of course).
  • 0 Hide
    isabelle huddleston , September 18, 2012 10:43 AM
    Google Wallet will generate a fake PayPass credit card number that hides the customer's real credentials.

    http://googleplus1supply.com/