Worldwide PC Shipments Remain Healthy

April 17, 2008

Worldwide PC shipments grew by 14.6% to 69.5 million units in the first quarter of 2008 (1Q08), which was above previous estimates of 13.2%. However, the U.S. market slipped to a meager 3.5% year-over-year growth rate as the general economic malaise currently affecting the U.S. economy has begun to impact the local PC market as well. The other international markets more than compensated for the U.S., with the EMEA and Asia/Pacific regions coming in more than 2 points above forecast due to continued strength in developing countries.

As with previous quarters, much of the growth came from the notebook markets, and in particular the consumer notebook segment in retail environments. "Notebook purchases are driving consumers beyond one PC per household to one PC per person and manufacturers are reacting by focusing their attention on customization and personalization," said Bob O'Donnell, vice president, Clients and Displays. "The ability to see and touch these devices in the retail environment and pick one out that matches a consumer's unique style is a critical part of the buying process for consumers."

Microsoft's release of Service Pack 1 for Windows Vista during the past quarter is expected to eventually raise the desire for businesses to deploy new PCs using Vista, but the impact in 1Q08 was very slight. Instead, the quarter's growth continued to be driven by declining average selling prices (ASPs) and the general transition to mobile PCs among businesses and consumers.

While the overall market was strong, there were some regional challenges. The U.S. market, in particular, struggled when compared to other regions. This dynamic is indicative of a major trend impacting the global PC market, wherein the U.S. is becoming less of an influence and the emerging markets are growing in importance. Specifically, the U.S. share of the worldwide market fell more than 2 points to 23% versus the same period last year.

"With the weak economy in the United States, PC shipments were negatively impacted by cautious PC buying in the consumer and commercial markets," said Doug Bell, research analyst, U.S. PC Tracker Program. "Despite the tough economic environment, shipment growth remained in positive territory, essentially driven by the sustained shift to mobility, combined with Dell's renewed competitive stance."

Regional Outlook

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