December 30, 2005

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Briefs: Oil, component costs may dampen PC market

The global personal-computer market surged in the third quarter, but the boom is unlikely to be sustained, a research group said Friday.

According to IDC's latest study on the world personal-computer market, growth in the third quarter was led in part by a boom in lower-cost PCs.

Nevertheless, "It will be difficult to sustain these growth rates in the foreseeable future, particularly as there is a risk of rising cost due to some component shortages and rising oil prices," said David Daoud, an analyst with the group's personal-computing program.

"Inventory management and competitive pricing along with changes in growth by region present both challenges and opportunities to PC vendors," he added.

Copyright 2005 by United Press International

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