PC 2Q sales weak, raising doubts about earnings

Jul 14, 2011 By JORDAN ROBERTSON , AP Technology Writer

(AP) -- The personal computer market grew slower than expected in the second quarter, hurt by the rise of tablet computers and anemic consumer demand in the U.S. and Europe.

The tepid diagnosis of the PC industry's health in two reports released Wednesday offers another sign of trouble for an industry at a crossroad. The reports' findings threaten to weaken investor sentiment about the sector heading into earnings season, with Apple Inc. and computer chip makers Intel Corp. and Inc. scheduled to report next week.

Market research firms . and IDC, using different methodologies, each found that PC shipments improved in the second quarter but were still lighter than expected.

Gartner found that 85.2 million PCs shipped, a gain of 2.3 percent but below its 6.7 percent projection. IDC found that 84.4 million PCs shipped, a 2.6 percent gain and short of its 2.9 percent projection.

IDC blamed the shortfall on a "hangover" from strong growth in the first half of 2010 as well as economic worries and competition from smartphones, tablets and other new technologies. Gartner said the PC market is adapting to the new pressures.

"After strong growth in shipments of consumer PCs for four years, driven by strong demand for mini-notebooks and low-priced consumer notebooks, the market is shifting to modest, but steady growth," Mikako Kitagawa, a Gartner analyst, said in a statement. "The slow overall growth indicates that the PC market is still in a period of adjustment, which began in the second half of 2010."

Hewlett-Packard Co. retained its position as the world's No. 1 PC seller in both companies' research. It was followed by . and .

Strong sales in Asia and Latin America and to corporations helped buoy the industry despite a contraction in the U.S. market.

Apple, which makes Mac computers as well as iPhones and , was the strongest performer in the U.S., rising above 10 percent market share in both reports.

HP shares were unchanged at $35.44 in extended trading, after the reports were released. Dell shares fell 7 cents to $16.46. Intel slipped 8 cents to $22.40, while AMD dipped 3 cents to $6.45. Apple shares fell $1.40 to $356.62.

Explore further: Judge approves $450 mn deal in Apple ebook suit

not rated yet
add to favorites email to friend print save as pdf

Related Stories

Global PC sales slow in third quarter

Oct 13, 2010

Global personal computer sales slowed in the third quarter, notching up growth of just 7.6 percent, well below the previous quarter, technology research firm Gartner said Wednesday.

Allure of iPad, other tablets hurting PC sales

Apr 14, 2011

Last year, the popularity of Apple Inc.'s iPad hurt PC sales. This year, that trend is continuing, as new data from two market research firms indicate PC shipments declined in the first three months of 2011.

IPad Impact: Tablets contribute to PC market pain

Oct 14, 2010

(AP) -- Few companies can disrupt an entire industry with a single product launch. But Apple Inc., whose history is filled with such game-changing moments, has done it again with its iPad tablet.

PC shipments slide in 1Q, HP tops Dell in US (Update)

Apr 15, 2009

(AP) -- Global shipments of personal computers fell 7.1 percent in the first three months of the year, but the decline was smaller than expected and research group IDC on Wednesday said the industry could turn around by ...

Recommended for you

Redbox raising DVD rental rates by 25 percent

1 hour ago

Redbox is raising its DVD rental prices by 25 percent beginning next week in an effort to wring more revenue from the shrinking audience that still watches movies on the discs instead of Internet video services such as Netflix.

Does bad behavior really hurt business?

12 hours ago

Silicon Valley seems to have more than its share of companies behaving badly. Among up-and-comers in the tech world, privacy abuses and executive gaffes have become viral sensations. But is all that bad behavior ...

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.