Analyst predicts slowing of PC demand

Gartner Research expects overall global PC demand in 2005 to slow compared with last year.

According to Gartner, worldwide PC shipments will total 199 million units in 2005, a 9 per cent increase from 2004. In contrast, PC shipments topped 183 million units in 2004, an 11.6 per cent increase over 2003.

Mobile PC shipments are expected to offer relief by increasing 17.4 per cent in 2005. Meanwhile, desktop PC shipments are forecast to grow at just 6.1 per cent.

Gartner believes that professional replacement activity peaked in 2004 and will decelerate sharply over 2005. While home replacement activity will continue to provide some strength to the market in 2005, it too seems likely to slow by year-end. Even so, mobile PC unit growth should outpace desk-based growth considerably again this year.

Kiyomi Yamada, an analyst for Gartner's client platforms research, said that PC market growth could prove stronger if PC manufacturers are able to position the PC as a digital media hub.

"PCs are also handicapped by low interoperability with other media devices and poor aesthetics. This is hurting their ability to compete against alternative devices that are cheaper and more readily connected to media sources."