IDC: PC Sales Recovering

IDC predicts PC unit shipments will rise as vendors get their inventories under better control. Still, growth for the year will be far below 1997. By Karsten Lemm.

Worldwide PC sales are picking up speed again and will grow modestly for the rest of the year, market researcher International Data Corp. predicted Wednesday.

Global unit shipments will rise 11 percent in the third quarter on a year-to-year comparison. In the first six months of 1998, shipments rose only 9.6 percent, the IDC report said.

PC sales growth slowed dramatically this year from the 16 percent pace set last year. Economic turmoil in Asia and oversupply in some segments of the industry hindered growth.

PC growth will pick up in the second half of 1998 as major vendors overcome their inventory problems, IDC said. There's also still plenty of demand for low-cost PCs and laptops.

"While some market signals are better, IDC is still concerned about the spread of global economic problems and the attendant problems on PC demand," Bruce Stephen, a senior IDC researcher, said in a statement.

Market performance is strongest in Western Europe, with unit sales increasing by 16 percent in the third quarter. Domestic growth in the third quarter is expected to hit 14 percent, primarily fueled by continuing strong demand for low-cost PCs and portable computers.

Sales in Asia will shrink by three percent in the quarter. However, the tide appears to be turning in Japan. Third-quarter shipments could grow by two percent there, compared with a second-quarter decline of 14 percent.

Among vendors, Apple Computer (AAPL) could be the big winner. IDC said the new, hot-selling iMac will bless the troubled computer maker with one of the biggest growth rates of the quarter.

On the Windows side, Compaq (CPQ) and Dell (DELL) are both performing strongly, with Hewlett-Packard (HWP), Gateway (GTW) and Toshiba in hot pursuit.