PC Shipments Expected to Decline For First Time in 11 Years

By Wolfgang Gruener
published

Market research firm IHS said that the high hopes for a rebound year for the PC have faded.

The company has revised its forecast for 2012 and now believes that only 348.7 million PCs will be sold this year - down 1.2 percent from 352.8 million. The last time the industry declined was in 2001, the year when the dotcom bust came crashing down on the PC industry.

Sobering outlooks posted by Intel and AMD appear to be the main drivers for the revised forecast. The back-to-school season has not jump-started things, ultrabook shipments are behind analyst's expectations, and there are questions about just how much impact Windows 8 will have on the PC industry. Analysts are also watching the performance of tablets and smartphones and whether they will negatively impact PC sales in the fourth quarter.

IHS said that there is now hope that 2013 will be a rebound year for the PC. This hope is resting on ultrabooks and ultracompact systems, as well as Windows 8. "Whether a newly configured PC space could then stand up to the powerful smartphone and tablet markets, however, remains to be seen," IHS said.

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Wolfgang Gruener
26 Comments Comment from the forums
  • boogalooelectric
    DOOOM!
    Reply
  • SpadeM
    Since performance on the hardware side is "good enough" for the last couple of years, those that own a 6 core sistem or a i7 920 have no reason to upgrade to new parts. This time around i believe we need the software to catch up and squeez every bit of performance from the hardware at hand. I've seen Intel and AMD introduce new instruction sets but haven't seen the software to benefit from it yet. Sure there are a few out there but mainly expensive ones.
    Reply
  • jacobdrj
    SSDs: Making your current computer hardware good enough since 2010...

    Once you hit Quad Core plus SSD, have enough archival storage space and a GPU that can play Google Earth well, you are pretty much set...
    Reply
  • guru_urug
    I dont care what these analysts claim. There are some things that suit a PC the best. I mean its cool to have big displays with high resolutions and quad core chips on a mobile or a tablet. But you can't replace the comfort of using a PC and the ease of repair and upgradabilty it brings with it. Also every PC is unique, its allows you to put what you want in it! or atleast choose from a plethora of configurations. I can choose the way it looks, the way it lights up, I can mix and match components to get the best of all worlds to get the most bang for buck. I know I will be using a PC for a long long time.
    Reply
  • jacobdrj
    guru_urugI dont care what these analysts claim. There are some things that suit a PC the best. I mean its cool to have big displays with high resolutions and quad core chips on a mobile or a tablet. But you can't replace the comfort of using a PC and the ease of repair and upgradabilty it brings with it. Also every PC is unique, its allows you to put what you want in it! or atleast choose from a plethora of configurations. I can choose the way it looks, the way it lights up, I can mix and match components to get the best of all worlds to get the most bang for buck. I know I will be using a PC for a long long time.
    PCs, at this point in the CONSUMER MARKET, is a niche product.

    Workstations are something else. Still, a niche product for people who need desktop power. Most people in the business world are happy with laptop offerings...
    Reply
  • boyabunda
    I like small form factor, low noise, high-performance PCs.
    Reply
  • shafe88
    PC Shipments Expected to Decline For First Time in 11 Years
    Just wait, just wait, right before the launch of Win8 PC's shipments will skyrocket with people heading to the stores snatching up Win7 PC's before Win8 PC's ship.
    Reply
  • XZaapryca
    This is what happens when developers write for consoles that use seven year old HW and just port that crap to PC. Why would I need a new PC if my old one runs "new" games just fine? The chickens are coming home to roost.
    Reply
  • InvalidError
    With the number of non-PC computing platforms available to consumers, the PC is slipping into a secondary or tertiary role for the non-PC-gamer/productivity crowd.

    For people who only use their PCs for browsing, banking, Netflix, etc., the ~$75 stick-size ARM/Android platforms that plug directly into the display's HDMI port often get the job done. Same goes with smart-TVs, modern game consoles, smartphones, tablets, etc.

    The only thing missing for more low-cost Android heavy-lifting in diminutive form factors is ARM64 to support 4+GB RAM and full-size applications.
    Reply
  • COLGeek
    Given the incredible processing power available for the relative low cost we have experienced during this time frame, it is no wonder that users are able to keep systems longer (in terms of viability and playability). If systems last longer, users buy fewer.

    Same logic applies to cars as well. Think about it.
    Reply