Poor Economy Will Slow PC Growth: iSuppli

By TWICE Staff -- TWICE, 11/20/2008

El Segundo, Calif. — iSuppli has slashed its 2009 forecast for PC unit shipments by nearly two-thirds due to “rapidly deteriorating conditions in the global economy and financial system,” it said today.

The firm originally said it expected global PC shipments would grow 11.9 percent in 2009; now it is forecasting only 4.3 percent growth for the year.

iSuppli’s 2010 expectations are also down. It is now predicting a 7.1 percent growth in unit shipments for the year, down from its previous outlook of 9.4 percent growth.

Matthew Wilkins, iSuppli’s principal analyst, computer platforms, explained that his firm revised its forecast because “the landscape of the global economy has changed dramatically, and in many ways irrevocably,” since iSuppli published its last worldwide PC forecast. He cited the banking and credit crisis and its effects as a primary factor in the firm’s move to adjust its outlook.

iSuppli said it believes desktop PC shipments will decline about 5 percent in 2009, but the notebook category should grow about 15 percent. The firm said it foresees continued strength in notebooks because “the segment is currently performing very well and has strong momentum”; it also thinks the new lower prices on entry-level netbooks will help drive demand for that particular portion of the notebook market.

The following figure illustrates iSuppli’s revised forecast.