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December 15, 2005

Report: PC Industry Growth Rate To Slow

Courtesy of TechWeb News

The current sales and unit growth rate enjoyed by the PC industry is due for a slowdown in 2006, says a Standard & Poor’s report.

Strong unit sales growth of 15 percent in 2005 is likely to give way to lower growth in both units sold and revenues, the company said. S&P noted that while unit sales hovered around 15 percent in 2005, dollar sales were up only about 5 percent. The PC industry may be reaching the end of a cycle in which sales climbed steadily, it said.

“Typically, upgrade or refresh cycles in the PC industry last about 8 to 10 quarters,” said Megan Graham-Hackett, an S&P analyst, in a statement. “The PC industry witnessed its 10th straight quarter of double-digit unit growth in the third quarter, and we now believe unit growth rates will come under pressure, with likely deceleration ahead.”

On a more optimistic note, S&P said it expects strong growth to take place in the Asia-Pacific region. The researchers indicated it was hopeful that PC sales in Europe would be up next year, although it views European sales as something of a “wild cad.”

In spite of a slightly gloomy report for revenues, S&P expects unit sales to be up about 9 percent in 2006.

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