U.S. consumers and businesses bought 71.3 million PCs, representing a drop of nearly 5 percent over 2010, when they bought more than 75 million, IDC said. So much for the year.

And the fourth quarter, traditionally one of the industry’s strong points, wasn’t much help. Shipments of PCs in the fourth quarter declined by nearly 7 percent, according to IDC; Gartner said they fell by 6 percent. Hewlett-Packard saw its U.S. shipments drop by 25 percent in the IDC report; Dell by 5 percent; Acer by 14 percent; and Toshiba by 2 percent.

HP’s flirtation with spinning off its PC division last year hurt sales, as businesses and consumers lost confidence in the company. The main beneficiary of that appears to have been China’s Lenovo, the world’s No. 2 PC maker, which saw its shipments, on a global basis, surge by 37 percent, though it’s not much of a player in the U.S. market.

For the full year, HP saw its shipments fall by nearly 5 percent; Dell’s fell by more than 8 percent; and Acer’s fell 30 percent in the U.S.

So who grew? Apple. It saw its shipments grow by 18 percent in the quarter, according to IDC, and by 21 percent in the Gartner report. As of the end of the year, IDC said, Apple’s share of the U.S. market amounted to 10.7 percent, which is up from 8.8 percent a year ago.

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.

Until this morning, I hadn’t either. For your edification, it’s an online market research business, and AOL (AOL) has owned it for more than a decade–as in, before the Time Warner (TWX) deal.

Make that used to own: Tim Armstrong’s company has sold DMS Insights off to uSamp, another online market researcher. PaidContent pegs the deal price at $3 million to $4 million. Which means it won’t quite be enough to cover former AOL CEO Randy Falco’s payout this year.

“If you’re considering upgrading Office with Office, we’d encourage you to consider an alternative: upgrading Office with Google Docs,” Glotzbach advised.

“If you choose this path,” he explained, “upgrade means what it’s supposed to mean: effortless, affordable, and delivering a remarkable increase in employee productivity. This is a refreshing alternative to the expensive and laborious upgrades to which IT professionals have become accustomed.”

Fascinating counsel, coming from a company that just a few years ago was insisting that it had no plans whatsoever to compete with Microsoft’s (MSFT) core PC software business, even as it rolled out the pieces of its own hosted desktop productivity suite.

In any event, much as Google (GOOG) claims its efforts are a match for Office, particularly Office 2010, which allows people to edit and collaborate on documents and presentations on the Web, market research says they aren’t perceived that way. And in all likelihood, Microsoft’s 94 percent share of the productivity software market (Gartner) will remain unshaken for some time to come.

To wit, a survey from Forrester Research (FORR) released on the eve of the Office 2010 launch shows quite clearly that Microsoft has little to worry about from Google Apps. Of the 115 North American and European enterprise and SMB decision makers the research house contacted, 81 percent said they use Office 2007, while four percent said they use Google’s productivity offerings. And one third said they plan to upgrade to Office 2010 in the next year.

Why?

Microsoft Office is familiar, and, in many cases, an upgrade to Office 2010 was included in their licenses (click on chart below to enlarge).

So while Google Docs might represent, as the search sovereign argues, “a real alternative for companies: a chance to get the collaboration features you need today and end the endless cycle of ‘upgrades,’” the market doesn’t yet much care. Yet. And that’s all that really matters.

Says Forrester: “The alternatives to Microsoft Office today do not meet the needs of the enterprises Forrester surveyed. Common end user barriers to adoption of alternatives include lack of required functionality, third-party integration requirements, user acceptance, lack of seamless interoperability with Office, and legacy content support needs. These gaps will be bridged in the coming years as Google, OpenOffice.org, and others mature.”

Researchers at MIT are hoping to help change that, using some high-tech tools that measure the emotional reactions of people as they’re testing a new product.

Part of the problem, the researchers say, is that people have a tough time accurately describing how they feel about something.

“We know that self-reported feeling is very inaccurate,” said Rosalind Picard, an MIT professor who directs research into computing and human emotion. “We’ve measured when people say they like something, but their face is leaking all kinds of disgust.”

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Among the consoles, the Nintendo Wii sold 3.81 million units, more than triple the 1.26 million sold in November. The Sony (SNE) Playstation 3 sold 1.36 million units, nearly twice the number sold in the previous month. Microsoft (MSFT) Xbox 360 units were 1.31 million, up from 819,500 in November. Even the aging PS2 had a good month, with 333,200 units, up from 203,100 one month earlier.

In the handheld category, the Nintendo DS sold 3.31 million units, up from 1.7 million in November, while the Sony PSP sold 654,700 units, up from 293,000.

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The market-research firm said that shoppers spent $4.64 billion online last week, up 4 percent, with Thursday, Dec. 10 spending reaching $852 million (the third-strongest day of the season to date, following Cyber Monday’s $887 million and the following day’s $886 million).

ComScore said it is likely to see the heaviest spending this season today, also known as Green Monday, as Internet users scramble to get purchases delivered by Christmas. What analysts hope for is a day in which e-commerce reaches $900 million, which would be a record sum, and Green Monday represents the day most likely to achieve it.

This year’s holiday-spending prospects are strong, Lazard Capital Markets said. It hosted a Friday call with e-commerce firm Channel Intelligence, which said it expects growth rates to remain positive after a promising Black Friday start.

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If it was, surely we wouldn’t be seeing the sixth consecutive month of declining sales reported by NPD. According to the market research firm, overall sales in the United States in August of hardware, software and game accessories were $909 million–a 16 percent drop from the same period a year ago.

Hardware sales were down 25 percent for the month and 17 percent for the year. Software fared little better. It was down 15 percent for the month and 14 percent for the year.

Six straight months of falling sales. Overall, the industry is down 14 percent for the year, earning nearly $9.1 billion so far in 2009, according to NPD. Is this a trend that can be dismissed with the standard “well, software drives console sales” explanation? I’m not so sure. It’s not like Mario Kart and Madden NFL 10 have disappeared from the shelves. Indeed, they’re still top-selling titles. They’re still driving sales. They’re just driving a hell of a lot fewer of them.

Indeed, Electronic Arts (ERTS) CEO John Riccitiello bemoaned this very fact in an email to employees, released yesterday. “It is discouraging that one of our highest-rated and best-marketed ‘Madden’ titles in years is facing strong headwinds,” he said, adding industry trends “present a challenge.”

Perhaps that’s because we’re in the middle of the worst American recession in 50 years and $40 for a videogame is still $40. I’ll bet $5 and my old Intellivision that the videogame industry will post its first year-over-year loss since 2004 this year.

Hardware Sales:

1. Nintendo DS     552.9K
2. Wii     277.4K
3. Xbox 360     215.4K
4. PlayStation 3     210.0K
5. PSP     140.3K
6. PlayStation 2      105.9K

Top 10 Software Sales:

1. Madden NFL 10 (Xbox 360, Electronic Arts): 928,000
2. Wii Sports Resort (Wii, Nintendo): 754,000
3. Madden NFL 10 (PS3, EA): 665,000
4. Batman: Arkham Asylum (360, Square Enix): 303,000
5. Batman: Arkham Asylum (PS3, Square Enix): 290,000
6. Madden NFL 10 (PS2, EA): 160,000
7. Dissidia Final Fantasy (PSP, Square Enix): 130,000
8. Wii Fit (Wii, Nintendo): 128,000
9. Mario Kart Wii (Wii, Nintendo): 120,000
10. Fossil Fighters (DS, Nintendo): 92,000

It would seem then that the so-called “fastest-growing segment of the PC market” is also the most misunderstood. For what is a netbook but an underpowered laptop or a giant Gallagher-sized smartphone? Consumers are intrigued by the netbook’s low prices, but they don’t understand its value proposition.

“We need to make sure consumers are buying a PC intended for what they plan to do with it,” said NPD’s Stephen Baker. “There is a serious risk of cannibalization in the notebook market that could cause a real threat to netbooks’ success. Retailers and manufacturers can’t put too much emphasis on PC-like capabilities and general features that could convince consumers that a netbook is a replacement for a notebook. Instead, they should be marketing mobility, portability, and the need for a companion PC to ensure consumers know what they are buying and are more satisfied with their purchases.”

Hey, politicians aren’t the only ones who get to do fancy polls!

Walt and I had a bunch of them about a variety of tech topics that we pulled out to ambush, ooops, pose to speakers at our seventh D: All Things Digital conference last week.

For the D7, we commissioned a study of digital trends from Penn, Schoen & Berland Associates (PSB), a global market research and consulting company and a conference production partner.

PSB conducted 1,005 interviews within the general U.S. population–you know, real people who are not geeked out.

One showed–despite Silicon Valley hype–how Twitter was still in its infancy, in awareness, engagement and size, which we got Co-founders Biz Stone and Evan Williams to react to onstage. (They could care less.)

Another showed that the biggest problem that users of the Apple (AAPL) iPhone cited was the poor AT&T (T) network. (Sorry, Randall Stephenson!)

Another looked at the declines in usage of the MySpace social networking site, which we know its new CEO Owen Van Natta enjoyed reacting to in front of the crowd. (Okay, he did not enjoy it.)

Also, no one is paying for subscriptions to blogs, which the Huffington Post impresario Arianna Huffington said was okay, since consumers will only fork over money for “very weird porn.” (Yes, she said that!)

In any case, here is a selection of slides that were shown and discussed during various speaker sessions.

Click on any slide below to enlarge, then hit “next” or “previous” on either side of the slides to page through.

Hey, politicians aren’t the only ones who get to do fancy polls!

Walt and I had a bunch of them about a variety of tech topics that we pulled out to ambush, ooops, pose to speakers at our seventh D: All Things Digital conference last week.

For the D7, we commissioned a study of digital trends from Penn, Schoen & Berland Associates (PSB), a global market research and consulting company and a conference production partner.

PSB conducted 1,005 interviews within the general U.S. population–you know, real people who are not geeked out.

One showed–despite Silicon Valley hype–how Twitter was still in its infancy, in awareness, engagement and size, which we got Co-founders Biz Stone and Evan Williams to react to onstage. (They could care less.)

Another showed that the biggest problem that users of the Apple (AAPL) iPhone cited was the poor AT&T (T) network. (Sorry, Randall Stephenson!)

Another looked at the declines in usage of the MySpace social networking site, which we know its new CEO Owen Van Natta enjoyed reacting to in front of the crowd. (Okay, he did not enjoy it.)

Also, no one is paying for subscriptions to blogs, which the Huffington Post impresario Arianna Huffington said was okay, since consumers will only fork over money for “very weird porn.” (Yes, she said that!)

In any case, here is a selection of slides that were shown and discussed during various speaker sessions.

Click on any slide below to enlarge, then hit “next” or “previous” on either side of the slides to page through.

In a new chapter to its ad campaign that will begin airing during the NCAA basketball playoffs on CBS (CBS) Thursday evening, Microsoft will begin hammering on a theme that could resonate in these times of economic hardship: how much less expensive Windows PCs are than Macs. For the commercials, Microsoft’s advertising agency, Crispin Porter + Bogusky, recruited prospective computer shoppers in the Los Angeles area through Craigslist and other sites, with a tantalizing offer to give them between $700 and $2,000 to purchase a new PC.

According to Brad Brooks, corporate vice president for Windows consumer product marketing at Microsoft, the agency told recruits it was a market research firm and didn’t mention it was working with Microsoft. The recruits were told they could keep whatever money they didn’t spend on a PC so they had incentives to look for good values.

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