PC sector bounces back

Notebook sales help PC sector record strongest quarterly increase since the end of 2000

Aggressive pricing and the continued surge in notebook sales have helped the PC sector record its strongest quarterly increase since the end of 2000.

According to research firm IDC, worldwide PC shipments in the latest quarter were 33.2 million, up 7.6 per cent on the previous year and well ahead of predictions of a 4.1 per cent increase.

The market tracker said the growth could be attributed to a strong response to price competition in Europe and the US, strong notebook growth and the limited impact of the Sars virus on Asian demand.

"The market is definitely moving in the right direction," said Loren Loverde, director of IDC's Worldwide Quarterly PC Tracker.

"It seems we dodged a bullet with Sars, and the market remains cautious, but growth in the US and Europe is ahead of schedule and we are still expecting increased business spending and continued portable adoption.

"There is a chance the results are driven by aggressive short-term pricing, so I wouldn't throw caution to the wind, but these are very good results."

Growth in EMEA was above expectations, said IDC, thanks to price drops and strong notebook growth.

The SME sector remains the healthiest, with corporates still sitting on the sidelines and consumer spending remaining moderate overall but strong for the growing number of entry-level notebooks.

Demetre Cheras, new business development director at UK PC manufacturer Elonex, agreed that the market is picking up and that notebooks have played a key role.

"Notebooks have shown consistent growth over the past year, and the overall growth in the PC sector has certainly been underpinned by the rise in notebook sales. That increase has stemmed the downward spiral affecting the entire sector," he said.

Dell retained its top position with 17.8 per cent of the market, ahead of Hewlett-Packard's 16.2 per cent and a significant way ahead of the number-three player, IBM, which had a 6.6 per cent share.