IDC foreasts first-ever decline in US PC sales

HONG KONG: The personal computer market in the United States will show a

decline in unit shipments for 2001 for the first time ever, research firm

International Data Corp said.

IDC said that based on new data, it now expects a 6.3 per cent decline in PC

unit sales for the year to 45.3 million units, versus a previous forecast of 2.2

per cent growth. In 2000 there were 48.4 million PCs shipped in the United

states, and 131.3 million sold worldwide, IDC said. Massachusetts-based IDC's

last PC forecast was made in March.

IDC also slashed its worldwide PC sales growth forecast, to an increase of

5.8 per cent over year 2000 shipments from a previous forecast of 10.3 per cent.

American consumers in particular have curbed their PC purchases, and IDC

predicts US sales will plunge by 17.3 per cent for 2001, based on expectations

the economy will remain sluggish.

In the first quarter, consumer PC shipments in the United States fell 26.4

per cent from the year-earlier period. Commercial PC shipments in the United

States grew in the mid single-digits in the first quarter, but IDC said it

expects corporate buying will slow and full year sales will rise by just 0.6 per

cent.

For 2002, IDC expects US PC unit shipments to rise by 4.6 per cent over 2001,

while PC sales outside the United States will grow by 16 per cent, for total

global growth of 12.2 per cent. "With the United States clearly in the tank

right now, the question is to what extent Europe and Asia will follow,"

said Loren Loverde, director of the firm's Worldwide Quarterly PC Tracker, in a

news release.

On Wednesday, US printer and computer maker Hewlett-Packard Co said its May

sales were weaker than expected as economic weakness had encircled the globe,

casting doubt on hopes for recovery in the technology sector.

(C) Reuters Limited 2001.