Shipments of personal computers will be lower than expected this year and next because of slower demand from consumers and medium-to-large businesses, market researcher IDC said.
Shipments will rise 1.1 percent this year to 135.5 million, IDC said, revising its 4.7 percent gain estimated in June.
Shipments will increase 8.4 percent to 147 million units next year, rather than 11 percent as previously predicted.
The revisions reflect the fact that PC demand remains weak after shipments fell last year for the first time since 1985. The weaker expectations also show the release of a new Windows operating system and enhanced memory capabilities have failed to spur new purchases, analysts said.
"Given the functionality of PCs used currently, not many users need to update them," said Hisashi Sueoka, an analyst at SG Yamaichi Asset Management Co, which manages US$21 billion in assets. "Christmas sales also won't be strong."
Medium-to-large businesses, which represent about 27 percent of the market, are postponing PC replacements. Consumers, who make up about a third of the market, are also reluctant to spend, said Loren Loverde, director of IDC's Worldwide Quarterly PC Tracker.
Meanwhile, small businesses and the public sector, which includes governments and educational entities, are spending more, Loverde said.
US-based Hewlett-Packard Co, the world's largest PC maker, last week said sales in its PC division fell 19 percent during the company's third quarter, which ended in July.
Craig Barrett, chief executive of Intel Corp, the world's biggest chipmaker, said demand for PCs and the semiconductors used in them may not rebound during the holiday season this year.
On Thursday last week, Intel cut US$200 million from the high end of its third-quarter forecast, saying revenue will be US$6.3 billion to US$6.7 billion. The reduction was less than analysts expected.
Shares of Hewlett-Packard rose US$0.65, or 5.1 percent, to US$13.50 Friday on the New York Stock Exchange and have declined 34 percent this year.
Intel shares rose US$1.11, or 7.4 percent, to US$16.22 on the NASDAQ Stock Exchange and have dropped 48 percent this year.
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