Thursday, October 11th 2012

PC Shipments Set to Decline in 2012 for First Time in 11 Years

After entering the year with high hopes, the global PC market has seen its prospects dim, with worldwide shipments set to decline in 2012 for the first time in 11 years, according to the IHS iSuppli Compute Platforms Service at information and analytics provider IHS.

The total PC market in 2012 is expected to contract by 1.2 percent to 348.7 million units, down from 352.8 million in 2011, as shown in the figure below. Not since 2001—more than a decade ago—has the worldwide PC industry suffered such a decline.


"There was great hope through the first half that 2012 would prove to be a rebound year for the PC market," said Craig Stice, senior principal analyst for computer systems at IHS. "Now three quarters through the year, the usual boost from the back-to-school season appears to be a bust, and both AMD and Intel's third-quarter outlooks appear to be flat to down. Optimism has vanished and turned to doubt, and the industry is now training its sights on 2013 to deliver the hoped-for rebound. All this is setting the PC market up for its first annual decline since the dot-com bust year of 2001."

From Hope to Disappointment
The year started off with major hope for Intel's ultrabooks at the annual Consumer Electronic Show (CES) in Las Vegas. New and innovative form factors like convertibles, combined with the first appearance of Windows 8 demos on display, provided a fresh wave of enthusiasm for the possibility of a revitalized PC market. Even when first-quarter PC shipments came in, the less-than-stellar results were thought to be a minor setback.

The high expectations continued midyear during the big PC event at Computex in Taiwan, as Intel plugged its latest Ivy Bridge processor. Shipments during the second quarter, however, once again disappointed.

For now, important questions remain for the PC market and the rest of the year:

● How much impact will Windows 8 really have toward boosting the PC market in the fourth quarter?
● Will continuing global economic concerns neutralize whatever hype or interest has been generated by ultrabooks?
● Will mobile computing gadgets such as tablets and smartphones win over PCs during the crucial holiday selling season, taking precious consumer dollars and keeping PC sales at bay?

There are signs that a strong rebound could still occur in 2013. While IHS has reduced its forecast for them, the new ultrabooks and other ultrathin notebook computers remain viable products with the potential to redraw the PC landscape, and the addition of Windows 8 to the mix could prove potent and irresistible to consumers. Whether a newly configured PC space could then stand up to the powerful smartphone and tablet markets, however, remains to be seen.
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39 Comments on PC Shipments Set to Decline in 2012 for First Time in 11 Years

#1
capolavoro
with the price is high as f*ck and they expect people to buy a pc.. yeah sure.. and the price will going higher because of this...
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#2
Velvet Wafer
lol, next reason after the harddrive lie, to increase HW prices? :laugh:
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#3
1Kurgan1
The Knife in your Back
While this may seem bad, I think a lot of it is that people are more tech savvy now, and many build their own computers.
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#4
NC37
Ultrabooks...the barebones laptops with a good CPU tossed in, priced like they were a Mac. What could possibly go wrong with that! :D

Coming up next...those same laptops packed with Windows 8! With free downgrade to Windows 7!! Oooooo, lets watch those shipments drop more!!
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#5
semantics
man the worlds most normalized graph 1.2% relates to 50% of the bar's height.
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#6
Ikaruga
Smartphones and Xbox and things like those are the ones to "blame" (mostly).
The enthusiast PC segment would need a massive all-around price-cut asap or untouchably higher performance than what anything else has to offer out there...
Those are really tough calls, but they are our only hopes or we will become some 0.1% exotic breed :shadedshu
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#7
Initialised
by: semantics
man the worlds most normalized graph 1.2% relates to 50% of the bar's height.
Really bad Excel Fu
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#8
Raw
If you can plug in a toaster

by: 1Kurgan1
While this may seem bad, I think a lot of it is that people are more tech savvy now, and many build their own computers.
Tech savvy...lol. What tech? The term is way too loosely used.
I never did get that in my head.
If you can plug in a toaster in a wall socket, you can build a computer.
Drop in a couple plug in items into a board and plug it in a wall. TECH!! BINGO, look Ma, I'm a techie. You can be so proud of me now.

Ahhh. I think I woke up in a lousy mood, sorry.
I'll go get some coffee now and re-think what I said.

:eek:
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#9
Jetster
I agree with 1Kurgan1. I think the computer parts market is going crazy due to the do it yourself builders. And with Smart phone sales up also.

Prices on prebuilt systems aren't high there the lowest they have ever been. You can buy a whole system for $350. And all it takes to build a system is just plug the stuff in. It didn't use to be that way
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#10
Raw
passe before I opened the boxes.

[QUOTE=
"There was great hope through the first half that 2012 would prove to be a rebound year for the PC market," said Craig Stice, senior principal analyst for computer systems at IHS. "Now three quarters through the year, the usual boost from the back-to-school season appears to be a bust, and both AMD and Intel's third-quarter outlooks appear to be flat to down. Optimism has vanished and turned to doubt, and the industry is now training its sights on 2013 to deliver the hoped-for rebound. QUOTE]

Not for nothing but I wonder if Craig Stice reads the news.
There has been a recession going on in the U.S. for years, the economy is at a all time low, the rest of the world is doing just as bad, if not worse.
Where are these peoples heads? In thier asses, that's where.

They have been shoving new "improved, faster, better" computers down our throats for years and many of us are choking.
GPUs are obsolete in a few months lately, CPUs in a few more than that. Win 8 released way before Win 7 is optomized fully.
All this stuff is so unnecessary for the common computer user. Even gamers can sit back for a couple or few years because todays hardware is so powerful.
You know what...I'm done throwing money away on this krap for a long while.
I've spent many thousands over the years to keep up with the Jones.
Yea, it was fun. But now I see the stupidity of it.

What broke me was my (2) Sandy 2500Ks and (2) GTX670s becoming passe before I opened the boxes.
And what else broke me was the fact I had (2) GTX570s that were almost just as fast in real life time experience.
The difference isn't noticeable to me.

Yea...go ahead and tell me how much I'm wrong, throw some numbers at me. Show me Wiz's reviews, benchmarks, etc.
I know, I read, I read them all.
And after keeping up by spending all this money over the years I have determined it's all a ripoff and I'm done playing the game for a long while.

And the final straw that broke the camels back... yesterday I watched some poor homeless guy eat food from a garbage can.
Here I am spending money like crazy on electronics and he's literally eating garbage.

I tried to give the poor guy $10.00 to grab a meal but traffic was too bad and I couldn't stop. As I really take a good look around me I see a whole lot of unfortunate people with tons of financial problems.
I'm not going to save the world, but I am going to save my money.

:confused:
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#11
Frick
Fishfaced Nincompoop
by: capolavoro
with the price is high as f*ck and they expect people to buy a pc.. yeah sure.. and the price will going higher because of this...
High prices? PC's are cheap nowadays.
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#12
3870x2
Wow that chart looks dim. You look at it and say "Wow, the second graph is a third of the first graph! Desktop computers are doomed!"

Looking at the numbers we see the change is less than 2% over a full year.

This is global, but haven't PCs been on a decline in the US and Europe for quite some time now?
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#13
Octavean
In all likelihood, there is more then one reason.

Economics
Gadgets (phones, tablets and so on)
DIY builders
And so on,…

Who knows, maybe the average Smartphone household has a phone for every member in the house and only one communal computer. I bet these numbers would look very different if gadgets were considered computers too.

I’ll also add that my old Core 2 Quad Q6600 system and Core i7 920 are still very powerful. Its hard for me to imagine replacing them and the Core i7 920 was released in 2008. That’s what, about 4 years going on 5,….? Intel really outdid themselves with this chip design (Bloomfield) and others like it (Lynnfield, Sandy Bridge, Sandy Bridge-E and Ivy Bridge). Over the years I have added systems (Core i7 860, Core i5 2500K and Core i7 3930K) because of expanding needs but nothing has truly needed to be replaced or upgraded because they perform so well.
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#14
3870x2
From all the examples I have seen, "Gadgets" seem to be the number 1 reason by a longshot. Being that most people just use them to surf the internet, tablets and laptops have largely replaced PCs.

The only reason I would want a PC instead of a laptop is the power. An insignificant commoner couldn't care less about how powerful a system is in that respect, so long as it runs everything in a timely manner.
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#15
tacosRcool
by: capolavoro
with the price is high as f*ck and they expect people to buy a pc.. yeah sure.. and the price will going higher because of this...
And yet people don't mind shelling out $500+ for an ipad and some accessories.
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#16
TheMailMan78
Big Member
Told you guys so. Been saying for a year or so now. You think its because of DIY? lol. Nope. Tablets and Phones. PC's are so yesterday. We are now ham radio operators. Why do you think Windows 8 went the route it did? Because in a few more years even mice will be forgotten.
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#17
Pandora's Box
by: TheMailMan78
Told you guys so. Been saying for a year or so now. You think its because of DIY? lol. Nope. Tablets and Phones. PC's are so yesterday. We are now ham radio operators. Why do you think Windows 8 went the route it did? Because in a few more years even mice will be forgotten.
god, cant imagine playing FPS games without a mouse.
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#18
TheMailMan78
Big Member
[quote="Pandora's Box, post: 2743634"]god, cant imagine playing FPS games without a mouse.[/quote]You will with a controller. Steam Box is right around the corner. Everything is a port now anyway. The writing is on the wall.
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#19
MT Alex
I think you are all missing the point. The lower sales aren't due to new fangled technology, but instead the result of a disintegrating world economy.
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#20
TheMailMan78
Big Member
by: MT Alex
I think you are all missing the point. The lower sales aren't due to new fangled technology, but instead the result of a disintegrating world economy.
What are you talking about? The privet sector is doing fine! Unemployment is going dow....................:laugh: Sorry I couldn't even finish that sentence.
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#21
Delta6326
To me I think its because computers are so powerful now for 90% of everyone that uses them that they have no need to upgrade every year.

If you don't play games or do video encoding etc. any computer now days will be good for many years, heck I'm still using a Q6600 and it gets everything done for me.

I remember back when I paid over $2000 for my Dell Inspiron 9200 with a Pentium M and ATI 9700 Pro still works and is just fine for Facebook and youtube(which will cover a large amount of people)
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#22
3870x2
The first computer my family bought was about $2000 and came with windows 95. You could get an equivalent system for $498 today.

Back in the day the only option you had were desktop computers and maybe laptops.

Today you can choose tablet, notebook, phone or desktop.
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#23
semantics
by: 3870x2
The first computer my family bought was about $2000 and came with windows 95. You could get an equivalent system for $498 today.

Back in the day the only option you had were desktop computers and maybe laptops.

Today you can choose tablet, notebook, phone or desktop.
$498 dollars? i hope that's like 300 on montior, os and things like speaker keyboards etc. Because anything over 300 is going to be better then something from 1996. Or you're just not shopping right.
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#24
MxPhenom 216
Corsair Fanboy
I knew "Desktop" PCs were going to be phasing outm but I didn't think they would this fast.
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#25
Ikaruga
by: Raw
What broke me was my (2) Sandy 2500Ks and (2) GTX670s becoming passe before I opened the boxes.
Your SB and Kepler will do just fine for a very long time, don't worry about them. You can - of course - allways spend thousands on new hardware which will be 10% faster, but that doesn't mean that they "became passe".


by: Raw
Here I am spending money like crazy on electronics and he's literally eating garbage.
Welcome to earth. This is how (we) humans run things nowadays:shadedshu
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