News

Gartner Forecasts Better-Than-Expected PC Shipments

Gartner reported a better-than-expected first quarter for PC shipments and is now forecasting a healthy market recovery in 2010, according to a released statement.

"We may have been a little pessimistic in our previous forecast for 2009," said George Shiffler, research director at Gartner, in a telephone interview. "We expected a very bad first quarter, but it didn't happen. Looking at it, consumer demand was much greater than expected."

The bump in shipments may be temporary, however, because it was attributed mostly to a restocking of inventory by distribution channels.

"It may be temporary and, in fact, we are forecasting the second and third quarters to be lower than the first," Shiffler said. "But things are probably going to get better. They [distribution channels] wouldn't be restocking if they didn't think things were going to get better."

The report notes that "mini-notebooks" helped drive the consumer side, even though the space recorded its first quarter-over-quarter decline to date. Shiffler said the gaining popularity of the smaller computing devices is due mostly to price.

"I'm not sure there's anything unique about mini-notebooks except that they are more affordable than higher-end machines," Shiffler said. "There has been a lot of hype about them, and in these economic times they make sense for a lot of people. But there will always be users that require more functionality than those types of units can provide."

Shiffler said that while they are declining in popularity, desktop machines will not be going away any time soon.

"There are a lot of functions that are just done better on PCs, and there's still a great pool of users that need desktop functionality," he said. "The challenge in the long term to traditional PCs will likely be in thin client machines that tap a server or cloud service for functionality."

The report notes that PC shipments were better than expected in all markets except for Eastern Europe, and that consumer shipments were stronger than business shipments. Gartner expects to see positive growth in PCs in the fourth quarter and a 10.3 percent gain next year.

"I think the PC market will continue to chug along with more quality improvements and continued pressure on vendors to lower the price," Shiffler said. "What the industry needs is a jolt. There's just no killer app out there on the horizon that will cause a quantum jump in sales."

About the Author

Herb Torrens is an award-winning freelance writer based in Southern California. He managed the MCSP program for a leading computer telephony integrator for more than five years and has worked with numerous solution providers including HP/Compaq, Nortel, and Microsoft in all forms of media.

Featured

  • Microsoft Dismantles RedVDS Cybercrime Marketplace Linked to $40M in Phishing Fraud

    In a coordinated action spanning the United States and the United Kingdom, Microsoft’s Digital Crimes Unit (DCU) and international law enforcement collaborators have taken down RedVDS, a subscription based cybercrime platform tied to an estimated $40 million in fraud losses in the U.S. since March 2025.

  • Sound Wave Illustration

    CrowdStrike's Acquisition of SGNL Aims to Strengthen Identity Security

    CrowdStrike signs definitive agreement to purchase SGNL, an identity security specialist, in a deal valued at about $740 million.

  • Microsoft Acquires Osmos, Automating Data Engineering inside Fabric

    In a strategic move to reduce time-consuming manual data preparation, Microsoft has acquired Seattle-based startup Osmos, specializing in agentic AI for data engineering.

  • Linux Foundation Unites Major Tech Firms to Launch Agentic AI Foundation

    The Linux Foundation today announced the creation of a new collaborative initiative — the Agentic AI Foundation (AAIF) — bringing together major AI and cloud players such as Microsoft, OpenAI, Anthropic and other major tech companies.