Post a CommentSlowing Home PC Market to Impact Holiday Season
Online staff -- Electronic News, 11/15/2004
A slower than expected home PC market has impacted year-end projections with researchers at Gartner Inc. now forecasting worldwide PC shipments to reach 182.7 million units for the year, an 11.4 percent increase over 2003, but lower than its previous forecast of 13 percent growth for the year.
A lack of "must have" PC features has made the expanding selection of entertainment electronics, such as flat panel TVs look even more attractive to consumers, particularly as many leading PC vendors are showcasing digital entertainment products this holiday season, the firm said. Consumers are expected to spend holiday budgets on these products rather than PCs.
Gartner revised its forecast based on disappointing performance in Q3 by the home PC market, in addition to weaker than expected home sales this holiday season due to increased competition from digital entertainment products, the firm said.
PC shipments are projected to reach 51.9 million units in Q4 worldwide, a 10.1 percent increase from the same period last year, according to the Stamford, Conn.-based researchers. However, it is the professional market driving the double-digit growth, Gartner noted.
“Aside from mobility, there is conspicuous lack of ‘must have’ new features for home PC users, and this is noticeably impacting home sales, especially replacements purchases,” said George Shiffler, principal analyst for client platforms research at Gartner, in a statement.
