January 14, 2010

US Computer Market Ended Strongly In 2009

Industry tracker IDC showed that nearly 20.7 million computers were shipped in the United States in the final three months of 2009, setting a new record and heralding an economic revival, AFP reported.

IDC reported that abundant deals on low-priced netbooks and demand that built up during the economic crisis boosted shipments of computers 24 percent in the final quarter of 2009 as compared to the same period a year earlier.

IDC Worldwide Quarterly PC Tracker research analyst Jay Chou said the market has weathered a storm that looks to be behind us.

However, he warned that salvaging decreasing margins would soon become even more pertinent as one considers the long-term effects of holding market share at the cost of profitability.

Chou said that if computer makers lock into competing on price to sell low-cost machines such as bare-bones netbooks, the market will continue down the slippery slope of 'good-enough' computing sold to the lowest bidder.

Tracker research manager David Daoud said the U.S. computer market exploded thanks to bargain offerings such as mini-notebooks being rife just as budgets were loosening on the crest of an economic recovery.

Daoud said the rubber-band effect and recovery from the year-ago quarter, which suffered from buyer contraction when the economic crisis was confirmed, would be the first step.

"The vendors responded with new low price points to stimulate demand and face competition," he said.

He also said consumer purchases overcame a weak commercial sector to save the quarter.

IDC showed that computer sales seemed to be rebounding around the world, with the Asia Pacific, excluding Japan, leading the way with 31 percent growth thanks to a blazing China market.


On the Net: