Growth in PC Shipments Still Slowing
Worldwide growth in the shipment of personal computers will slow to 18.5% this year, according to an International Data Corp. forecast, down from the earlier prediction of about 19.5%.
The slowdown in worldwide PC growth will continue in 1997, the market research firm said, with shipments increasing just 16.6%. IDC released its latest forecast at a conference in Santa Clara, Calif.
PC unit shipment growth has been slowing since turning in a spectacular performance of 25% in 1995, spurred by new Pentium-powered machines, the new Windows 95 operating system and demand from home buyers. PC unit shipments rose 23% in 1994.
The worldwide slowdown, which has been expected by most PC makers and computer chip makers, is largely a result of weaker demand in Europe, shortages of some components, slackening demand from U.S. home buyers and the problems at Apple Computer Inc., IDC said.
“Apple is losing the most market share,” said Bruce Stephen, vice president of PC research at IDC.
Apple has been grappling with problems in forecasting and meeting product demand since the middle of 1995. That was exacerbated by management turmoil, weakening demand and tougher competition from machines equipped with Microsoft Corp.’s Windows 95 software.
Vendors that are doing well include Hewlett-Packard Co., Dell Computer Corp. and Toshiba Corp., Stephen said. International Business Machines Corp. is doing well internationally, but has lost some market share in the United States.
Compaq will continue to hold the No. 1 position globally, though its growth is slowing somewhat, IDC said.
Offsetting slack demand from the U.S. home market are strong corporate demand and cheaper machines. Shipments in the United States will rise 16.6% this year, up from the 15.5% predicted earlier, IDC said.
The popularity of the Internet and internal corporate networks are also boosting U.S. demand.
“It is a compelling new use that is bringing in users and spurring additional buyers,” said IDC analyst Eric Lewis, who follows the U.S. market. That boost will continue into next year, he said.
The U.S. market will rise only 13% in 1997, though, because of slower price reductions and saturation of the home market, IDC predicts.
