Hardware: The slump continues…

Yograj Varma

At the Gartner Summit held in New Delhi recently, the question that was clearly

on top of every mind was, "When will it get over?" Not the Gartner

Summit, but the US slowdown! The answer–anytime between the next 11 and 18

months, the usual cycle for any recession or slowdown, the exception being the

Great Depression of the 1930s that lasted for over three years.

Analysts around the globe were watching the second quarter of this year for some signs of

revival. The vigil was more on the IT segment, which has led the economy’s

prosperity through the last decade. The results so far, however, have been

disappointing.

Hardware slump continues in Q2

The growth in PC shipment volumes, that witnessed a robust climb only a few

quarters ago, has now fallen flat. According to IDC, for the first time, PC

shipments in Q2 showed a decline of 2%. Gartner Dataquest findings also reflect

a similar picture: "The worldwide PC market experienced negative growth for

first time since 1986."

Among the global vendors, barring Dell, that

recorded a 15% rise in its quarter-on-quarter growth, all the other major

vendors saw a sharp decline in their PC shipments. The worst hit was Compaq with

a drop of 10.5%. The US market also has a similar story to tell.

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