PC Market on Track in 2007

At just beyond the mid-year point in 2007, all signs point to the PC market attaining iSuppli Corp.'s annual forecast of 11.2 percent growth in unit shipments. Notebooks have been a key driver, but shipments of desktop PCs have shown encouraging signs of improvement compared to 2006.

Global PC shipments in the second quarter of 2007 were up in the range of 10.5 to 11.5 percent compared to the same period in 2006.

In the second half of the year, which on a statistical basis historically has accounted for 53 percent of shipments for the full year, worldwide growth is expected to be 13 percent compared to the second half of 2006.

"Notebooks clearly have sales strength and momentum right now, but what we find encouraging is the pick up in desktop sales," said Matthew Wilkins, iSuppli's principal analyst for compute platforms research. "We saw year-over desktop shipment growth in the first quarter of 2007, and now our early indications are that second quarter shipments have built on this trend".

The second-quarter financial results of PC microprocessor giant Intel Corp. attest to the fact that PC shipments were very healthy in the second quarter. Intel saw record chipset shipments, and an increase in microprocessor sales compared to the first quarter of 2007-key indicators that PC shipments were strong in the second quarter.

In terms of PC makers, Wilkins said, "we expect Hewlett-Packard Co to retain its leadership position throughout the year, as the company has strong momentum, and is well positioned in the hot consumer market." The more fascinating battle going on right now is between Acer Inc. and Lenovo for the number-three rank in the global PC market.

iSuppli