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Long-Term PC Outlook Improves, Even As Q2 Growth Dips Below 10%, According to IDC.


FRAMINGHAM, Mass. -- The worldwide PC market continued to expand at a healthy pace in the second quarter of 2006, although growth was slower than in recent quarters, according to according to
prep.
1. As stated or indicated by; on the authority of: according to historians.

2. In keeping with: according to instructions.

3.
 IDC's Worldwide Quarterly PC Tracker. Total PC shipments exceeded 52 million units and growth was 9.8% for the quarter, 0.6% behind expectations. Despite the slower second quarter, IDC expects the second half of 2006 to be strong enough to maintain double-digit growth for the year.

"Mature regions, like the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , Western Europe Western Europe

The countries of western Europe, especially those that are allied with the United States and Canada in the North Atlantic Treaty Organization (established 1949 and usually known as NATO).
, and Japan, are exhibiting more conservative growth trends, while developing regions are not only growing faster, but exceeding expectations," said Loren Loverde, director of IDC's Worldwide Quarterly PC Tracker. "Although this is an important development trend, it's also the case that the bulk of portable PC adoption - the leading market driver - remains concentrated in the more mature markets. As a result, there's plenty of opportunity for PC companies to grow, but they need to adequately target the growth segments in each region."

PC shipments in Western Europe and Japan were considerably slower than expected in the second quarter, largely due to short term factors such as inventory reduction and the FIFA FIFA International Association Football Federation [French Fédération Internationale de Football Association]

FIFA n abbr (= Fédération Internationale de Football Association) → FIFA f 
 World Cup. Growth in Asia/Pacific excluding Japan and Rest of World (including Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. , Canada, Central and Eastern Europe The term "Central and Eastern Europe" came into wide spread use, replacing "Eastern bloc", to describe former Communist countries in Europe, after the collapse of the Iron Curtain in 1989/90. , and Middle East and Africa) was down slightly from the prior quarter, but still ahead of expectations while growth in the United States rose slightly from the first quarter.

In light of the 2Q06 results, IDC's growth projections for 2006 were lowered slightly from the June forecast. However, volume for 2007 remains unchanged and future years have been bolstered bol·ster  
n.
A long narrow pillow or cushion.

tr.v. bol·stered, bol·ster·ing, bol·sters
1. To support or prop up with or as if with a long narrow pillow or cushion.

2.
 by the strong outlook in emerging markets as well as further growth potential driven by new product designs and digital convergence In the days of the first computers, transaction and company data were the first types of information digitized. Then came text, opening the world to word processing, followed by audio CDs and finally video. .

"We believe consumer notebooks will continue to drive strong overall PC sales through the rest of this year despite the presence of many potential competitors for discretionary income Discretionary Income

The amount of an individual's income available for spending after the essentials have been taken care of.

Notes:
Essentials are things like food, clothing, and shelter.
 this holiday season, such as flat-panel TVs," said Bob O'Donnell, vice president Clients and Displays. "Looking forward, we expect desktop shipments will begin to stabilize stabilize

See peg.
, particularly in the enterprise segment. However, consumer notebook adoption will fuel industry growth and move us closer to the day when notebooks will out-ship desktop PCs."
U.S. and Worldwide PC Shipments and Growth, 2004-2008

Region                          2004    2005    2006*   2007*   2008*
----------------------------------------------------------------------
USA Units (M)

Consumer                         21.8    23.6    25.6    28.0    30.5

Commercial                       36.5    40.3    42.2    45.9    51.5

Total                            58.3    63.9    67.8    73.9    82.0
----------------------------------------------------------------------
Worldwide Units (M)

Consumer                         64.9    78.6    88.5   100.1   111.7

Commercial                      114.4   129.3   141.3   157.2   176.1

Total                           179.2   207.8   229.7   257.4   287.8
----------------------------------------------------------------------
USA Growth (%)

Consumer                                  8.3%    8.5%    9.2%    9.1%

Commercial                               10.4%    4.9%    8.8%   12.1%

Total                                     9.6%    6.2%    9.0%   10.9%
----------------------------------------------------------------------
Worldwide Growth (%)

Consumer                                 21.1%   12.6%   13.2%   11.5%

Commercial                               13.0%    9.3%   11.3%   12.0%

Total                                    16.0%   10.5%   12.0%   11.8%
----------------------------------------------------------------------
*Forecast data

(Shipments are in millions of units)

PCs include Desktop, Notebook, Ultra Portable, and x86 Server and do
not include handhelds.

Source: IDC Worldwide Quarterly PC Tracker, June 2006


IDC's Worldwide Quarterly PC Tracker gathers PC market data in 55 countries by vendor, form factor, brand, processor brand and speed, sales channel and user segment. The research includes historical and forecast trend analysis as well as price band and installed base data.

For more information, or to subscribe to Verb 1. subscribe to - receive or obtain regularly; "We take the Times every day"
subscribe, take

buy, purchase - obtain by purchase; acquire by means of a financial transaction; "The family purchased a new car"; "The conglomerate acquired a new company";
 the research, please contact Kathy Nagamine at 650-350-6423 or knagamine@idc.com.

About IDC

IDC is the premier global market intelligence and advisory firm in the information technology and telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications.  industries. We analyze and predict technology trends so that our clients can make strategic, fact-based decisions on IT purchases and business strategy. Over 700 IDC analysts in 50 countries provide local expertise and insights on technology markets. Business executives and IT managers have relied for 40 years on our advice to make decisions that contribute to the success of their organizations.

IDC is a division of IDG IDG International Data Group
IDG Integrated Drive Generator
IDG Installation Design Guide
IDG Internet Discussion Group
IDG Inset Dielectric Guide
IDG International Dangerous Goods (mail, shipping) 
, the world's leading technology media, research, and events company. Additional information can be found at www.idc.com

All product and company names may be trademarks or registered trademarks of their respective holders.
COPYRIGHT 2006 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2006, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Date:Sep 14, 2006
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