PC Rebound Continues With Growth Over 22 Percent Despite Mixed Economic Outlook, According to IDC

Despite rising worries over sovereign debt and the pace of economic recovery, the global PC market grew 22.4 percent in the second quarter of 2010, in-line with forecasted growth of 22.9 percent, according to the International Data Corporation (IDC) Worldwide Quarterly PC Tracker. The market in EMEA remained remarkably strong – benefiting from some recovery as well as commercial replacements – while growth in the United States and Asia Pacific was slightly behind projections.

On a worldwide basis, desktop PC shipments exceeded expectations, helping to confirm signs that businesses are moving ahead with replacements, while portable PC sales trailed forecast estimates, reflecting the effects of a thus-far jobless recovery on consumer spending.

"The PC market remains robust, and in a recovery phase, despite challenges to a broader economic recovery, such as slow job growth and a more conservative outlook in Europe and Asia Pacific," said Jay Chou, Research Analyst with IDC's Worldwide Quarterly PC Tracker. "The factors which led to the recent PC rebound – an aging commercial installed base, a proliferation of low cost media-centric PCs, and low PC penetration through much of the world – remain key drivers going forward."

"The surge in consumer activity seen in the past two quarters has started to slow as expected, while commercial replacements continue to grow," said Bob O'Donnell, IDC Vice President for Clients and Displays. "We expect consumer activity to remain healthy, but gradually slow through the end of the year, while commercial market growth will be more stable, reflecting a planned replacement cycle over the next several years."

In Asia Pacific (excluding Japan), the region gained nearly 35 percent compared to a year ago and also had 15 percent sequential growth, coming in just short of forecasts. Desktop PC volume moved at a brisk pace to help offset lower than expected activity in portable PCs. Nonetheless, portable PCs remained a key driver with at least double-digit year-on-year growth in nearly all countries.

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