Arik Hesseldahl

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The iPad Strikes Again: Gartner Cuts Its PC Market Forecast

In another sign that notebook PCs are out and tablets are in, research firm Gartner has dramatically cut its sales growth forecast for the PC sales this year and next.

Gartner now says that PC shipments will grow by 10.5 percent, down from a previous forecast of a much more robust 16 percent. It doesn’t get much better in 2012. Gartner now expects growth of 13.6 percent down from 14.8 percent previously.

There are two forces at work. First, demand for PCs is generally weaker in China, but there’s also an overall loss of interest among consumers for mobile PCs, Gartner analyst Ranjit Atwal explained in a statement. Sales of Mobile PCs have been growing like crazy for the last several years, and particularly as Wi-Fi has penetrated the home and office. But now that smart phones and tablets–especially the iPad–have brought the Internet everywhere a notebook can go plus lots of other places too, notebooks just aren’t as cool as they once were.

And there’s more bad news for notebook vendors: Not only are sales of new notebooks slowing, but consumers are expected to keep their existing notebooks for a longer period of time. In mature markets like the U.S. and Europe, notebook sales will be growing at an average of less than 10 percent over the next five years, down from 40 percent during the previous five years.

This isn’t the first time that Gartner has put out data showing how tablets are encroaching on the notebook market. In January, Gartner and its main rival IDC came out with fourth quarter sales data that was weaker than expected, in part because of iPad sales.

Tablets were supposed to be–or so the conventional wisdom went–entertainment and media consumption devices, not something you could do any serious work on. That’s clearly turning out not to be the case.

And while for the most part sales of notebooks into large corporations is secure–Gartner says it still expects double-digit growth in sales of professional notebooks–that segment is not without its own set of iPad-centric worries. As Apple said on its latest earnings conference call, 80 percent of Fortune 100 companies are putting iPads to work in their businesses, and Apple is actively pushing the iPad as a device that’s as useful at the office as at home.


comments so far. Add yours.

  • $340AShareMakesMeAngry>8-#

    Microsoft says that the iPad and tablets in general are not weakening PC sales and claim that Windows 7 licenses are up and climbing.

  • Anonymous

    “Microsoft says that the iPad and tablets in general are not weakening PC sales and claim that Windows 7 licenses are up and climbing”

    Gee, what a surprise!

    If MSFT say so then it must be the Gospel truth.

    After all, would Monkey Boy Ballmer lie?

    Ayuh

  • http://pulse.yahoo.com/_FKBLDBB4JKUPTSTWKURWMGUPN4 Andrew M

    It’s guidance version of vaporware!

  • Anonymous

    Windows 7 licenses are up only because companies are finally changing out XP. Dinosaur Ballmer had his shot at tablets 10 years ago and punted. He needs to retire before Microsoft is vaporware.

  • Anonymous

    Windows upgrade licenses are not PC sales. Plenty of people upgrade from XP or Vista without buying a new computer… as the article says, people are keeping their computers longer. Which makes sense, computers are now more powerful and in many cases over-powered for the average consumer. Leaving no reason to upgrade hardware.

  • http://twitter.com/DaveLindhout Dave Lindhout

    Ballmer also said:

    “There’s no chance that the iPhone is going to get any significant market share. No chance.”

    He went on to say:

    “I like our strategy. I like it a lot.”

    How’s that working for you Steve?

    BTW, the only reason you hate $340 a share is that Microsoft has been about $30 a share, forever. And, Apple closed at $359.56 today. Sucks being a Softie these days, doesn’t it?

  • Anonymous

    70% of Windows users are still on XP, so Windows 7 sales can increase while PC sales slow down. If I bought 2 Windows XP PC’s in 2008 and today I replace them with 1 Windows 7 PC and 1 iPad then that’s an additional Windows 7 but a reduction in PC’s.

  • Anonymous

    Since I got my iPad, my 2 notebook PC’s have become portable desktops. I take them on business trips and set them up where I’m working, but I don’t carry them around with me day-to-day, I don’t use them on a train or plane, even though one of them is a very small and light MacBook Air (the other is a MacBook Pro.) The iPad is just too capable and too portable. It fits in a book bag. It never runs out of juice. It’s ready to use in a blink. It’s a mobile computer.

  • $350AShareMakesMeGrin>8-D

    I was being sarcastic.

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