The Channel logo

News

By | Paul Kunert 10th November 2011 14:44

Thai flood ripples set to impact entire world PC market

Forecast graphs dip into the red zone

The Thai floods have dampened Goldman Sachs outlook for global PC sales forcing it to downgrade forecasts for this quarter and next.

The devastation to the disk drive industry, particularly WD and Toshiba, is starting to feed through into the supply chain with PC vendors already confirming price rises and warning of shortages in the run up to Christmas and beyond.

The investment banker has lowered initial unit estimates for Q4 from 3.1 per cent growth to a decline of three per cent, and expects the drive shortages to deteriorate early next year pulling down Q1 projections of four per cent growth to a decline of 8.5 per cent.

This will weigh heavy on Microsoft's numbers and according to reports, Goldman analyst Heather Bellini has lowered Windows sales expectations for the vendor from $5.1bn in the Xmas quarter to $5bn and from $19.4bn for the year to $19bn.

Total revenues for the software maker's December quarter are predicted to fall from $20.9bn to $20.8 and for the fiscal year from $74.8bn to $74.3bn - down a whopping half a billion dollars.

As revealed by El Reg yesterday, Dell's BTO model - which it always talks up as an advantage over rivals - leaves it more exposed to the dearth of drives across the industry than rivals, according to analyst Context.

Gartner said it has yet to quantify the top level impact of the drive shortages on PC availability. ®

comment icon Read 8 comments on this article alert Send corrections

Opinion

Microsoft CEO Satya Nadella
ARA_LIbertad

Chris Mellor

Elliott Management sinks its teeth into retiring godhead
Satya Nadella
cloud computing Fight

Features

Failure to crack next-gen semiconductors threatens to set back humanity
SMEs get lip service - what they need is dinner at the Club
SAP Match Insights
Vorsprung durch grossendatatechnik, as we like to say in Germany
Inside the Google Lab where surgeons prepare the human/dog experiment
Big Blue exec tells El Reg what to keep an eye on