PC Market Hits the Brakes

Everyone seems to be holding on to their pennies these days and we've all seen the impact on the economy; especially the U.S. stock market. You have to figure that people are more concerned with buying food than buying gadgets and the PC market is evidence of that, remaining stagnant in the second quarter of 2001 with shipments declining by 2%. IDC Research says shipments were down 7.2% as growth from Asian markets "evaporated amid a continuing U.S. market slump." The Japanese market, which managed 30% growth in 2000 in a moderate economic climate, gave in to worsening economic conditions. Shipment growth in the second quarter of 2001 was essentially flat, as consumers and businesses postponed or cancelled purchases. Growth in Europe also declined, although not as dramatically. PC shipments in the United States were just below forecasts with a year-on-year decline of 8.1% and 1.3% sequentially in the second quarter of 2001, according to IDC. As for vendors, Dell seems to be kicking butt (relatively) despite the economy. The company outpaced growth in all regions, including 10% growth in its core U.S. market, and over 40% growth in the rapidly slowing Asian markets. Maybe with everyone avoiding plug-and-play machines, they'll all see the light and start rolling their own. With a bit of know-how, it makes as much financial sense as eating at home instead of at a restaurant. Plus, you get to pick what's on your plate (substitutions are embraced).