Portable PC Adoption And Emerging Markets Claim Larger Share Of PC Future, According to IDC

FRAMINGHAM, MA – MARCH 20, 2007 – Worldwide PC shipments rose 7.3% from a year ago to 64.7 million units in the fourth quarter of 2006, according to IDC's Worldwide Quarterly PC Tracker. This was slightly slower than the past several quarters, and down from more than 15% in 2004 and 2005. Fourth quarter growth was also a few points behind expectations as slow commercial buying – particularly of Desktops in more mature regions – constrained the market.

Annually, PC shipments reached 227.7 million units with growth of 9.5% and shipment value of US$231.9 billion with growth of 6.1%. Desktop volume of 138.3 million units was up less than 2% over 2005, while Portable shipments of 82.4 million were up 26.3%. While Desktop volume will grow by low single-digit rates throughout the forecast with a compound annual growth rate (CAGR) of 3.8% from 2006 to 2011, Portable PC shipments will maintain a CAGR of 16.1% over the same period. As a result, Portable PCs will represent more than 50% of all Client PCs worldwide in 2011 with a CAGR for Client PC shipments of 9.1%.

The role of emerging markets is also growing. Asia/Pacific (excluding Japan) and Rest of World (including Latin America, Canada, Central and Eastern Europe, the Middle East, and Africa) represented more than 50% of Desktop PC shipments in 2006 and will represent more than 50% of all worldwide PC shipments in 2011.

"Slower growth in Desktops and in relatively mature regions changes the market dynamics a bit," said Loren Loverde, director of IDC's Worldwide Quarterly PC Tracker. "A strong Portable offering is becoming more important, and while local players have a larger share of international markets, the shift to Portables will favor the largest players. Portables are picking up some of the slack from Desktops and will benefit from improved security, power management, and new designs supported by Vista. While more replacements and Vista adoption may provide a brief respite for Desktops in 2008, essentially all Desktop growth will occur in emerging regions."

"In the United States, portable PC shipments will maintain double-digit growth through 2010, but this shift to mobility will not be enough to offset reduced demand for desktops," said Doug Bell, analyst in IDC's Personal Computing program. "The outlook is valid for both consumer and commercial segments, creating mid-single digit growth for the entire market, peaking in 2008. However, the release of Vista and a desktop refresh will create some growth opportunity in late 2007 and early 2008, before resuming a declining growth trend in the out-years."

U.S. and Worldwide PC Shipments and Growth, 2005-2009

Region 2005 2006 2007 (a) 2008 (a) 2009 (a)

USA Units (M)

Consumer 23.6 24.8 27.0 29.7 31.2

Commercial 40.3 40.7 42.5 44.7 47.0

Total 63.9 65.5 69.5 74.4 78.2

Worldwide Units (M)

Consumer 78.5 89.2 100.9 113.1 123.0

Commercial 129.3 138.5 152.0 168.3 182.3

Total 207.9 227.7 252.9 281.3 305.3

USA Growth (%)

Consumer 5.1% 8.9% 9.9% 5.1%

Commercial 1.0% 4.4% 5.2% 5.2%

Total 2.5% 6.1% 7.0% 5.2%

Worldwide Growth (%)

Consumer 13.5% 13.1% 12.1% 8.7%

Commercial 7.1% 9.7% 10.7% 8.4%

Total 9.5% 11.1% 11.3% 8.5%

(a)Forecast data

(Shipments are in millions of units)

PCs include Desktop, Notebook, Ultra Portable, and x86 Server and do not include handhelds.

Source: IDC Worldwide Quarterly PC Tracker, March 2007

IDC's Worldwide Quarterly PC Tracker gathers PC market data in 55 countries by vendor, form factor, brand, processor brand and speed, sales channel and user segment. The research includes historical and forecast trend analysis as well as price band and installed base data.

For more information, or to subscribe to the research, please contact Kathy Nagamine at 650-350-6423 or knagamine@idc.com.

About IDC

IDC is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy. More than 900 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 90 countries worldwide. For more than 43 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com .

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