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iSuppli Corp: Kids Go Back to School; PC Makers Go Back to the Bank(M2 PressWIRE Via Acquire Media NewsEdge) RDATE:03092008 El Segundo, Calif. -- Can the global PC market continue to shrug off the impact of the economic downturn and maintain its momentum throughout the critical back-to-school season? With the notebook having become a must-have item for students, iSuppli Corp. believes that buyers throughout the Western Hemisphere are driving strong sales during the back-to-school season, contributing to global unit shipments of all types of PCs attaining year-over growth of 12 percent. If shipments rise at the anticipated rate, the PC market will have defied poor economic conditions for three consecutive quarters, paving the way for annual growth in the region of 12 percent in 2008. "The PC industry for years has counted on back-to-school demand in Western nations to drive much of its annual growth," said Matthew Wilkins, principal analyst for compute platforms at iSuppli. "But due to the financial crisis impacting the United States and other nations, concerns have arisen throughout the year over the resilience of the global PC market. "With PC shipments having hung tough in the first quarter and having exceeded expectations in the second, the omens are good for shipments from July through September, and for the rest of the year. It seems that notebook PCs have graduated to must-have' status for students and parents-as well as for consumers in general-causing shipments and sales to continue to rise despite worsening economic conditions." The back-to-school bounce Back-to-school has always been an important part of the annual PC market, which over the years has demonstrated strong performance in the third quarter. Typically back-to-school has driven demand for computers and peripherals, as students prepare for the coming school year by replacing their computer equipment. Looking at third-quarter performance from a longer historical period, i.e., from 2003 to 2007, PC unit shipments have risen sequentially by an average of 8 percent over the second quarter. This represents a major contributor to annual growth. The attached figure presents iSuppli's estimate of sequential growth in worldwide PC unit shipments in the third quarter from 2003 to 2007. Reading the tea leaves The most relevant clue to gain insight on the third-quarter PC shipments is the performance of the PC market during the first six months of the year. The first quarter yielded impressive year-over-year percentage growth in the low teens. Having compiled its second-quarter PC market data, the period exceeded expectations to produce year-over growth in the region of 14 perent, exceeding iSuppli's forecast of 9.5 percent. So the first two quarters of 2008 indicate the PC market is not being significantly affected by the credit crisis. Must-have PCs The strength of the PC market in 2008 shows that even when available disposable incomes are being eaten away by rising interest rates and energy and food costs, consumers still are finding the money-and more importantly justifying the spending of that money-on a computer. iSuppli believes that this phenomenon is a reflection of the importance placed upon the PC in Western markets, where they are no longer considered luxury items and now are regarded as "must-have" necessities. The notebook PC is driving this shift in status. With their built-in wireless networking, excellent performance, feature-set parity with desktops and falling prices, notebooks are now considered indispensable. The best is yet to come The PC industry is playing to its strengths in the notebook PC market. The pursuit of even cheaper desktop and notebook PCs is continuing at a furious pace, with the rapid introduction of low-cost PCs that are available for even lower prices. Nettops, which have a desktop form factor, and netbooks, which have a notebook form factor, are offering consumers a well-rounded computing experience at even lower price points. But are these systems simply re-polished value PCs from the bargain basement? Not at all, iSuppli believes. Intel, for example, designed its newest microprocessor, the Atom, for such applications. It's natural that the brand-aware "iPod-generation" students of 2008 will want a Sony VAIO, Apple MacBook Pro, or a Hewlett-Packard or Dell equivalent. However, the market now offers reliable, adequately specified notebook PC platforms for all budgets. In light of these factors, iSuppli believes the third quarter will perform in line with expectations, contributing to a 2008 PC unit growth forecast in the region of 12 percent. For more information on the PC market, and to learn more about iSuppli's views and forecasts for Nettops and Netbooks, please see the new report entitled: Low-Cost PCs: A Big Threat, or a Small Nuisance? To learn more, please visit: http://www.isuppli.com/catalog/detail.asp?id=9486 All Information and Intellectual Property Contained Herein is the Sole Property of iSuppli Corporation About iSuppli Corporation iSuppli Corporation is the global leader in technology value chain research and advisory services. iSuppli provides market intelligence services for the EMS, OEM and supplier communities in addition to servicing consumer electronics and media concerns. Services afforded by iSuppli range from electronic component research to device-specific application market forecasts, from teardown analysis to consumer electronics and from display device and systems research to multimedia content and services. More information is available at www.isuppli.com CONTACT: Jonathan Cassell, Editorial Director and Manager, Public Relations, iSuppliCorporation Tel: +1 408 654 1714 Tel: +1 408 921 3754 WWW: http//www.isuppli.com ((M2 Communications Ltd disclaims all liability for information provided within M2 PressWIRE. Data supplied by named party/parties. Further information on M2 PressWIRE can be obtained at http://www.presswire.net on the world wide web. Inquiries to [email protected])). Copyright ? 2008 M2 Communications Ltd. |