Notebooks keep becalmed PC market going

As competition keeps prices down

By John Leyden • Get more from this author

Posted in IT Channel, 22nd August 2005 12:25 GMT

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Worldwide PC unit shipments are on pace to grow 12.7 per cent in 2005 even though revenues are set to increase by only 0.5 per cent, according to a preliminary forecast by analyst house Gartner.

Gartner reckon 206.6m PCs will ship in 2005 with revenues of $202.7bn. In 2006, worldwide PC units are expected to grow 10.5 per cent but revenues will decline 0.4 per cent due to a fall in the average selling price of PCs. Strong competitive pressures are pushing down the price of desktop and laptop PCs.

"The drop in mobile PC ASP [average selling price] has been particularly remarkable," said Mikako Kitagawa, principal analyst for Gartner’s client platforms research. "PC vendors have succeeded in increasing the unit share of higher margin mobile PCs, but this has resulted in a significant sacrifice of desk-based revenue as vendors struggle to maintain the value proposition of desktops at the low end of the market."

Buyers are increasingly attracted to mobile computing because of lower prices to enjoy an enhanced wireless computing experience. Worldwide mobile PC units are forecast to grow 31 per cent in 2005, according to Gartner. ®

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