IHS: PC SHIPMENTS SET TO FALL IN 2012 FOR FIRST TIME IN 11 YRS

(The following is a reformatted version of a press release
issued by IHS iSuppli and received via electronic mail. The
release was confirmed by the sender.) 
PC Shipments Set to Decline in 2012 for First Time in 11 Years 
El Segundo, Calif. (Oct. 10, 2012)--After entering the year with
high hopes, the global PC market has seen its prospects dim,
with worldwide shipments set to decline in 2012 for the first
time in 11 years, according to the IHS iSuppli Compute Platforms
Service at information and analytics provider IHS (NYSE: IHS). 
The total PC market in 2012 is expected to contract by 1.2
percent to 348.7 million units, down from 352.8 million in 2011,
as shown in the figure attached. Not since 2001--more than a
decade ago--has the worldwide PC industry suffered such a
decline. 
“There was great hope through the first half that 2012 would
prove to be a rebound year for the PC market,” said Craig Stice,
senior principal analyst for computer systems at IHS. “Now three
quarters through the year, the usual boost from the back-to-school season appears to be a bust, and both AMD and Intel’s
third-quarter outlooks appear to be flat to down. Optimism has
vanished and turned to doubt, and the industry is now training
its sights on 2013 to deliver the hoped-for rebound. All this is
setting the PC market up for its first annual decline since the
dot-com bust year of 2001.” 
From hope to disappointment
The year started off with major hope for Intel’s ultrabooks at
the annual Consumer Electronic Show (CES) in Las Vegas. New and
innovative form factors like convertibles, combined with the
first appearance of Windows 8 demos on display, provided a fresh
wave of enthusiasm for the possibility of a revitalized PC
market. Even when first-quarter PC shipments came in, the less-than-stellar results were thought to be a minor setback.
The high expectations continued midyear during the big PC event
at Computex in Taiwan, as Intel plugged its latest Ivy Bridge
processor. Shipments during the second quarter, however, once
again disappointed.
For now, important questions remain for the PC market and the
rest of the year: 
-         How much impact will Windows 8 really have toward
boosting the PC market in the fourth quarter? 
-         Will continuing global economic concerns neutralize
whatever hype or interest has been generated by ultrabooks? 
-         Will mobile computing gadgets such as tablets and
smartphones win over PCs during the crucial holiday selling
season, taking precious consumer dollars and keeping PC sales at
bay? 
There are signs that a strong rebound could still occur in 2013.
While IHS has reduced its forecast for them, the new ultrabooks
and other ultrathin notebook computers remain viable products
with the potential to redraw the PC landscape, and the addition
of Windows 8 to the mix could prove potent and irresistible to
consumers. Whether a newly configured PC space could then stand
up to the powerful smartphone and tablet markets, however,
remains to be seen. 
For more information, please contact: 
Jonathan Cassell
Senior Manager, Editorial
jonathan.cassell@ihs.com
Direct: + 1 408 654 1714
Mobile: +1 408 921 3754 
Or 
IHS Media Relations
press@ihs.com
+1 303 305 8021 
About IHS (www.ihs.com)
IHS (NYSE: IHS) is the leading source of information and insight
in critical areas that shape today’s business landscape,
including energy and power; design and supply chain; defense,
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Headquartered in Englewood, Colorado, USA, IHS employs more than
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Copyright © 2012 IHS Inc. All rights reserved. 
(bjh) NY 
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