Nobody Wants A Desktop PC Anymore

(RTTNews) - Global demand for personal computers continued to fall in the first quarter and are not expected to improve in the near future, according to market research firm IDC.

PC shipments dropped by 12.5% in the first quarter from a year ago, higher than IDC's forecast of a decline of 11.3%, hurt primarily by weak currencies, depressed commodity prices, political uncertainty, and delayed projects..

IDC now expects global PC shipments in 2016 to drop 7.3% from a year ago, compared to its previous forecast of a 5.4% decline.

PC demand had been hit by consumer's preference for smartphones and tablets, as well due to longer lifecycles for PCs. However, recently growth rates for smartphones and tablets have started to fall, thus reducing the competitive pressure on PCs. But, it has not been translated to stronger PC shipments.

The PC industry had expected the new Windows 10 to drive demand for computers, however, Microsoft's new OS has not been able to conjure enough demand for the declining PC market.

IDC forecasts for progressively smaller declines through 2017 followed by stable volume in 2018.

"In addition, we have now had four consecutive quarters of double-digit volume declines. This type of prolonged slump is unprecedented, and lowers the bar for some improvement going forward. Unfortunately, the PC market still faces some persistent challenges, and for now, improvement continues to mean slower declines," said Loren Loverde, vice president, Worldwide Tracker Forecasting and PC research.

"Although inventory has improved in some markets, channels remain extremely conservative," said Jay Chou, research manager at Worldwide PC Tracker. "The economic and competitive pressures are particularly affecting the consumer segment, which is projected to see another year of double-digit declines in 2016, and decline throughout the forecast.