PC Sales Projected to Increase in 2005

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Personal computer (PC) purchases in the United States and overseas are expected to rise progressively in 2005, although the post-recession double-digit demand percentages may decrease somewhat, according to IDC’s Worldwide Quarterly PC Tracker. Domestic PC shipments, more than 80 percent of which are expected to be driven by commercial consumption, are projected to rise nearly 10 percent, from 58 million in 2004 to 63.5 million in 2005. Experts predict commercial PC purchases in the United States will continue to drive demand, even as PC sales to individual consumers decline.

PC purchases worldwide also will continue to swell, growing from 176.5 million this year to 195 million units shipped in 2005. As in the United States, this 10.5 percent increase is attributable to strong commercial demand, primarily in Western Europe and the Asian Pacific Rim.

 

Yet amid all of these rosy forecasts is a word of warning that the impressive increases in PC purchases witnessed over the past two years probably will not be sustained in the long term. The upsurge, experts say, is a natural result of economic recovery, and annual increases in PC sales among consumers are already declining.

 

“The market needs to be careful in interpreting these results,” said Loren Loverde, director of the IDC study. “Strong growth in Western Europe and (the) rest of world played a significant role in boosting second quarter results, while growth in the United States missed forecasts and slipped into single-digits.”

 

So what does this mean for IT overall? Not much, really. PC purchases are projected to continue rising—the level of demand is merely dropping off. Businesses and individuals will keep buying computers, although perhaps not at frenetic post-recession rates. In any event, with people now accessing the Web on cellular phones, it’s obvious that the industry does not live and die by PC sales.

 

For more information, see http://www.idc.com.

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