Thursday, August 29th 2013

IDC Again Lowers PC Market Outlook

Worldwide PC shipments are now expected to fall by -9.7% in 2013, further deepening what is already the longest market contraction on record, according to the International Data Corporation (IDC) Worldwide Quarterly PC Tracker. The new forecast reflects not only a continued expansion of mobile device options at the expense of PCs, but also marked the cessation of emerging market growth that the industry had come to rely on in recent years. The market as a whole is expected to decline through at least 2014, with only single-digit modest growth from 2015 onward, and never regain the peak volumes last seen in 2011.

While the results of the second quarter were in line with forecast, a number of issues led IDC to further downgrade its PC outlook. Aside from stubbornly depressed consumer interest, 2013 also marks the first year where emerging regions are expected to contract at a steeper rate than mature regions. Leading this trend is China's revised forecast, which calls for a double-digit decline in shipments this year compared to 2012, as channel sources report high levels of stagnant inventory and continued enthusiasm for tablets and smartphones. The repercussions of a slowing China, anxiety over the possible tapering of the U.S. quantitative easing program, and weak intrinsic PC demand are among a litany of factors that have rippled across portions of other formerly strong-growth areas, leading emerging markets as a whole to see declines through at least 2014.

"The days where one can assume tablet disruptions are purely a First World problem are over," said Jay Chou, Senior Research Analyst, Worldwide Quarterly PC Trackers at IDC. "Advances in PC hardware, such as improvements in the power efficiency of x86 processors remain encouraging, and Windows 8.1 is also expected to address a number of well-documented concerns. However, the current PC usage experience falls short of meeting changing usage patterns that are spreading through all regions, especially as tablet price and performance become ever more attractive."

Looking beyond 2014, IDC expects a slow rebound, driven in part by modest consumer refresh of systems whose lifecycle have dramatically lengthened in recent years, as well as businesses taking a first serious look beyond Windows 7. However, without an adequate mass of compelling applications, the PC market is poised to subsist primarily on lukewarm replacements in the future.

"The second quarter of 2013 was the third consecutive quarter where the U.S. market came through stronger than the worldwide market. This was largely due to some recovery in the overall economy and channel inventory replenishment," said Rajani Singh, Research Analyst, Client Computing. "Following the stronger than expected 2Q13, we expect the second half of 2013 to restore some volume momentum driven largely by better channel involvement of top vendors and industry restructuring/alignment. We also anticipate operating system migration (Window XP to 7) will drive some volume in the commercial segment. Entry-level ultraslim systems and lower-priced convertibles will also be bright spots in an otherwise still troubled consumer market."
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11 Comments on IDC Again Lowers PC Market Outlook

#1
Dj-ElectriC
I'll hug my hardware at the stormiest of storms and if we die, better die together :toast:
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#2
FreedomEclipse
~Technological Technocrat~
Maybe when developers decide to make games that will bring even my PC down too its knees instead of making an 'all for one and one for all' console port then maybe this will change,

We need better games, we need more PC only titles.

Sadly Its all about the money these days, spend less money designing a game then ride the wave of cash when stupid people decide to buy it.
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#3
AsRock
TPU addict
What about all those people who build there own PC's which i bet are growing numbers are fairly high..

IDC The company that helps shit to go under.
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#4
haswrong
by: FreedomEclipse
Maybe when developers decide to make games that will bring even my PC down too its knees instead of making an 'all for one and one for all' console port then maybe this will change,

We need better games, we need more PC only titles.

Sadly Its all about the money these days, spend less money designing a game then ride the wave of cash when stupid people decide to buy it.
we need cheaper titans, cheaper xeons, cheaper platinum psus, cheaper ssds, cheaper lian-li cases, etc..
Posted on Reply
#5
birdie
Yep, they've evaluated the Windows 8.1 changes and decided it was still unpalatable.
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#6
FreedomEclipse
~Technological Technocrat~
by: haswrong
we need cheaper titans, cheaper xeons, cheaper platinum psus, cheaper ssds, cheaper lian-li cases, etc..
If you think that is killing the industry then you are mistaken. Pricing is partially to blame. but PCs are always going to be more expensive the consoles....

remember the days when games used to drive hardware sales?
Posted on Reply
#7
Fourstaff
by: FreedomEclipse

remember the days when games used to drive hardware sales?
Everyone and their dog is playing games like Farmville and other various not so demanding games nowadays, what do you expect? :roll:
Posted on Reply
#8
FreedomEclipse
~Technological Technocrat~
by: Fourstaff
Everyone and their dog is playing games like Farmville and other various not so demanding games nowadays, what do you expect? :roll:
Instead of blaming the consumers why not blame the devs for not making games engaging enough for the average Joe? Though you are on the right track
Posted on Reply
#9
TheLaughingMan
Just count the consoles as what they are, mid-range budget PCs. Throw in those numbers and we are all good.
Posted on Reply
#10
Fourstaff
by: FreedomEclipse
Instead of blaming the consumers why not blame the devs for not making games engaging enough for the average Joe? Though you are on the right track
Not blaming the consumers or the devs, just pointing out the fact that a lot of "good" (subjectively) games are not very demanding. From a gaming perspective, AMD and Intel has not offered something which is dramatically more powerful than 2 years ago, giving no reason to upgrade computers. Easier just to buy a graphics card and plug it in for 4x more performance.
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#11
Jorge
Before you know it someone will declare an economic recession in Asia, the UK and the U.S. DUH! :wtf:
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