PC sales grow but weak 2009 flatters results

Both desktop and laptops grew, driven in part by sustained consumer demand and renewed commercial buying, with IDC (NYSE:IDC) noticing new areas such as all-in-one PCs from HP (NYSE:HPQ), Asus and Lenovo (HKSE: 0992.HK) emerging as a new, high-growth area.
 
“The strong first quarter builds on the fourth quarter rebound and shows rising confidence in the PC supply chain and commercial client base along with persistent demand from consumers,” says Loren Loverde, vice president, IDC Worldwide Trackers.
“The commercial gains are a cornerstone of market rebound that we've been expecting and are now seeing in the data. Despite continued strengthening of commercial demand and solid consumer and emerging market results, year-on-year growth is likely to slow in coming quarters as year-ago comparisons get more difficult. This is part of an expected recovery trend that should include strong second quarter performance and lift growth for the year to 15 percent or higher.”

IDC expects a surge in activity from the supply side around product innovation and new form factors and designs, which are likely to drive interest among consumers. The analyst firm remains optimistic about PC growth this year and next, but caution that sustainable growth in the PC space will also require sustained economic growth. Across EMEA, portable PC sales in particular returned to strong double-digit growth boosted by a very competitive consumer market, while increasing business demand also boosted shipments. 

Of the top five PC manufacturers, which account for 85 percent of the market, fourth place Lenovo saw the greatest improvement with 58 percent year-on-year growth in 1Q10, in part due to renewed focus after restructuring, channel expansion and commercial sales. HP still leads with around 20 percent market share while Acer (LSE: ACER.L) trails behind with around 11 percent, although it managed to overtake third place Dell (NASDAQ:DELL) based on the number of units shipped in 2010.