IDC sends out Mayday to PC industry

Dismal May data throws already bleak Q2 forecast into doubt

IDC admits its already pessimistic Q2 PC shipment forecasts have been thrown into doubt after the market unexpectedly deteriorated further in May.

The analyst had previously predicted that Q2 would show some signs of improvement on Q1, projecting that shipments would decline by 11.7 per cent year on year, compared with the 13.3 per cent fall seen in the previous quarter.

Although the rate of decline did slow in April, IDC said its data for May is behind pace for achieving its Q2 projections.

In the four key European markets under review – the UK, France, Germany and Turkey – shipments slumped by 17 per cent in Q2, compared with the 16 per cent fall registered in April.

In a crumb of comfort, IDC's programme vice president for worldwide PC trackers, Loren Loverde, said the global market could be set for a brighter second half.

"We still expect an improvement in the second half of the year as more new products are launched and we get into the back-to-school and holiday seasons. But the market will likely remain cautious about the second half of 2013," she said.

"The expectation for the second quarter was not all that high, showing only minor improvement from the first quarter. But the May results reflect deteriorating conditions rather than improvement and the market will probably fall short of projections."

IDC said its Q2 forecast could still be met if the market rebounds in June. It expects Q3 and Q4 sales to fall by just 4.7 and 1.6 per cent respectively, resulting in an annual decline of 7.8 per cent for 2013 as a whole.