Reply #51: PC Shipments Up, Revenue Down In 2009

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Gartner had predicted a 2% decline in PC shipments, but instead reports a 2.8% increase from 2008.

By Antone Gonsalves
InformationWeek
November 24, 2009 12:01 PM

Global PC shipments are projected to rise this year, driven by sales of mobile computers, a research firm says. But consumers' preference for inexpensive systems in the economic recession pushed industry revenue way down.

PC manufacturers will ship 298.9 million units this year, a 2.8% increase from 2008, Gartner reported. Revenue, however, will fall 10.7% to $217 billion. Gartner in September had predicted a 2% decline in annual PC shipments.

As the global economy recovers, PC sales are expected to rise next year. Gartner predicts shipments will rise 12.6% over this year to 336.6 million units, and revenue to increase 2.6% to $222.9 billion.

"Blame this year's drop in market value on the unprecedented declines in PC average selling prices we've seen this year," Gartner researcher George Shiffler said in a statement Monday. "The rapid decline in PC ASPs reflects a marked shift towards lower price points as customers have looked for good enough PCs at the cheapest price, and vendors have tried to spur market growth by catering to ever-lower price points."

The decline in average PC selling prices is expected to slow next year as the market recovers, but consumer preference for low-priced PCs in the form of laptops and netbooks is not expected to change. Therefore, the value of PC shipments will significantly lag shipment growth next year and beyond, Gartner said.

Microsoft (NSDQ: MSFT)'s Windows 7, which shipped to consumers in late October, will have only a limited impact on holiday PC sales. "We just don't see consumers buying new PCs solely because of Windows 7," Shiffler said.

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