Replacement sales to drive PC market growth in 2005

Framingham (MS) - Worldwide PC sales show strong growth posting gains of more than 14 percent, according to a study released by market research firm IDC. Analysts however believe that shipments will slow down in 2005 with commercial replacement sales continuing to be the driver of growth.

The computer industry increased sales volume of PCs in the third quarter of this year by about 13 percent from 39.8 million to 44.7 million systems. Researchers from IDC believe that the industry will reach a new record high of 195.1 million shipped PCs for the year, up 14.5 percent from 177.2 million in 2003.

While consumer sales are slowed its pace to an increase of 12.1 percent, the commercial sector gained 15.9 percent, according to the data released. Overall shipments are expected to retract to a growth of about eight percent for consumer devices and 11.3 percent for commercial systems in 2005. In 2005, the industry will top for the first time $200 billion in revenues, IDC said.

"We’ve expected the market to slow from peak recovery in 2004 since mid-2001," said Loren Loverde, research director at the research firm. "However, despite the relatively weak consumer market, commercial and portable demands continue to drive growth."

Dell defended its position as leading PC manufacture worldwide, which the company holds since the first quarter of 2003. In the third quarter of this year, Dell shipped 8.1 million systems, up from 6.7 million last year. Hewlett-Packard follows with 7.1 million, up from 6.6 million a year ago. IBM remained in third place with sales of 2.7 million computers. China-based Lenovo shipped 1.2 million PCs and will become the third largest system builder through the acquisition of IBM’s PC business.