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April 16, 2010

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Outlook brightens for PC companies

WORLDWIDE personal computer shipments increased more than 20 percent in the first three months of 2010 from the same period a year ago, a sign the PC business is on firmer ground after one of its shakiest stretches ever.

Analysts at research firms IDC and Gartner Inc said on Wednesday that the quarterly increase was higher than expected, and was driven by spending by both consumers and businesses. That could indicate that many kinds of technology companies, not just ones that sell PCs, will report stronger-than-expected first-quarter results as Intel Corp did on Tuesday.

Consumers' interest in low-cost laptops helped prop up the PC industry for the last three quarters. That remained true in the first quarter, a time when PC sales are typically slower. Consumers also started buying more of the slim "all-in-one" desktop computers that build everything into the monitor, IDC said.

The analysts also said businesses in the United States and Western Europe are starting to purchase new computers for the first time since the economic downturn.

Mikako Kitagawa, an analyst at Gartner, said businesses spent more freely as the overall economy improved. She also said Windows 7, Microsoft Corp's newest PC operating system, will push companies to replace computers faster in the second half of 2010 and the beginning of 2011.

Gartner said PC shipments rose 27.4 percent. IDC estimated shipments grew 24.2 percent. The two calculate using different methods.

The quarter looked strong compared with a year ago, when PC shipments sank about 7 percent.


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