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Global PC shipments falling more than expected: IDC

SAN FRANCISCO: Global PC shipments, already hit by consumers’ growing preferences for tablets and smartphones, are falling more than previously predicted due to weakness in China, according to market research firm IDC.

Slower February shipments in China caused by government budget cuts and other factors mean worldwide PC shipments could fall by a “double-digit” percentage in the first quarter, compared with a previous estimated decline of 7.7 per cent, IDC said in a report.

For all of 2013, global PC shipments will probably fall between 1.8 per cent and 2 per cent, IDC analyst Loren Loverde told Reuters.

“Even getting to positive growth in the second half of 2013 will take some attractive new PC designs and more competitive pricing relative to tablets and other products,” he said.

A handful of financial analysts have recently trimmed their forecasts for top PC chipmaker Intel Corp’s first-quarter results because of concerns over weak PC sales.

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In China, which accounts for more than a fifth of global PC shipments, government spending cuts and anti-corruption measures have added to the timing of Chinese New Year in reducing purchases of new PCs in February, according to IDC.

Earlier this month, IDC said 2013 global PC shipments would probably fall 1.3 per cent, extending a 3.7 per cent decline in 2012.

Intel, whose processors are used in 80 per cent of PCs, has said it expects revenue between $12.2 billion and $13.2 billion in the March quarter, which it is due to report on April 16.

Analysts on average expect Intel’s first-quarter revenue to be $12.69 billion, down about 6 per cent from the December quarter, according to Reuters.

Shares of Intel were down 0.16 per cent at $21.34 on Monday afternoon on the Nasdaq.