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PC sales are falling

Economic recovery stalls
Wed Aug 11 2010, 14:55

PC SALES are "falling off a cliff" as shares of Intel and AMD tumble.

According to Marketwatch, US analysts unanimously voiced concerns after AMD and Intel shares slumped. Market analysts agreed that the deceleration in PC orders was to blame, with some also noting DRAM supply constraints.

Baird analyst Tristan Gerra pushed Intel down into neutral territory from outperforming. One J P Morgan analyst even went so far as to suggest that PC sales have fallen off a cliff, based upon his checks with sources in Taiwan.

Evidence from Reuters confirms that PC sales are definitely taking a big hit. Acer had recently managed to work its way up to becoming the number one PC vendor globally and was reported to be on its way up in the laptop rankings. Now the company has seen a big chunk of its sales fall off and lower stock prices. The company took a 38 per cent year on year decrease in sales and its shares opened 4.6 per cent lower after reporting the decline.

What gives with PC sales? We reported back in May that PC sales were heading for a slump, in Europe at least. Big brand PC manufacturers started cutting back on parts orders and Taiwan was shipping fewer components.

But just a couple of months later in July we reported that PC sales were up in Europe. Market tracking company Context revealed that sales of desktops, notebooks and servers grew 10 per cent compared to last year. µ

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Comments
Upgrade

My network of AM2s are still chugging along fine, they can deal with HD or most games with the appropriate GPU or Raptor/SCSI/SAS. Though, Im afraid that despite an attempt at upgrading to HD2400 AGP and an SSD, my Shuttle-X XP2400 can't handle Youtube 720 without noticeable lags.

If I'm not mistaken, the biggest niches are for school kids and corporations; school kids will attempt to squeeze out all they can from their parents, but corporations may be satisfied with an Atom.

posted by : Peter Chan, 12 August 2010 Complain about this comment
Consoles generations

The fact that consoles have big lifespan, and considering that games are made almost never PC-exclusive fixes the perf. requirements more or less.
Then even if a title is is PC-exclusive its probably mmo which have even lower req.

posted by : MN, 12 August 2010 Complain about this comment
Good enough

As mentioned already, PCs are just good enough, since the Core 2 Duo era, PCs have been able to handle pretty much anything daily related and do it quickly.

Also take into consideration that lots of PC gamers have moved to 360/PS3, since they can handle FPS games(PC's bread and butter) there aren't many great PC exclusives coming anymore, Battlefield 3 is going multiplatform, BATTLEFIELD 3! FFS, No reason to upgrade/buy a top box.

I'm not sure if "PCs" included both desktops and laptops, but if it was desktops only, most home consumers buy laptops now.

There is no reason to upgrade or buy new, simple as that.

posted by : George, 12 August 2010 Complain about this comment
No point in upgrading

PC performance plateaued in 2007-2008. Everything beyond that is just sugar for most intents and purposes. For once, there really isn't need to upgrade one's system because lack of performance. Even Flash and Windows can't subdue the processors now.

posted by : BB, 12 August 2010 Complain about this comment
Upgrades work for me

I'm a gamer with a 3 year old PC. I'm not buying a new desktop any time soon and if this one dies, I will just build one from a barebones unit.

posted by : Frank Black, 11 August 2010 Complain about this comment
No need to buy new systems

-- There is no need to replace or upgrade computers for most users.

-- Three and four-year-old hardware will run every operating system, web browser, and office suite that exists.

-- It is much simpler and cheaper to replace a hard drive if it fails than an entire system.

-- Gamers and video editors may need upgrades or even new systems, but even in those cases, there aren't many titles or functions that require today's bleeding edge (and expensive) hardware.

posted by : treefrog07, 11 August 2010 Complain about this comment
MS Controls?

Sorry Mitch, MS' sales is great. Windows 7 is the best selling OS ever and has already surpassed Vista after less than a year on the market. It is only Apple's market share that is falling:

http://marketshare.hitslink.com/os-market-share.aspx?qprid=11

and you are obviously clueless - or just trolling.

posted by : Sagem, 11 August 2010 Complain about this comment
Squeezing the mid range

Low end PCs sell in big numbers, but the profit margins are too tight. High end PCs make huge profit, but sell in tiny numbers. The mid range is the "bread and butter" of the industry.

So what does the industry do? Jack up the prices of mid range kit going into a recession, thats what. The strong dollar put up to 40% on everything, so who was going to notice another 10 or 15% (or 100%, in the case of RAM) on top? Well, lots of people evidently.

The thing about the market is it will never, *ever* get tired of slapping you when you do something stupid.

posted by : Anonymous Coward, 11 August 2010 Complain about this comment
@Tomas

Sad but true.
Time for the very rich to just make jobs, even if it's moving a pile of wood 10 feet type work, an put their money to use, just to keep the value up.

posted by : Vinster, 11 August 2010 Complain about this comment
Adding to what Jim posted...

Also, in the past a PC might last 3-4 years before becoming antiquated and slow running. Today a PC can go 6 or more years and still be useful. And as Jim said, when a computer breaks it only makes sense to fix it. Long gone are the days if setting IRQs and memory addresses, so fixing really isn't that hard of a task.

Is this affecting PC sales? Maybe?

posted by : Ken, 11 August 2010 Complain about this comment
MS controls?

Could it be that the poor uptake of new MS operating systems are affecting global PC sales? No...

posted by : Mitch, 11 August 2010 Complain about this comment
Sales catching up to reality

Unemployed people do not buy much other than food. The lower the consumption the more people who lose employment. We're in a vicious downward economic sprial worldwide.

posted by : Tomas, 11 August 2010 Complain about this comment
Fix 'em, don't buy a new one

It makes a lot more sense for today's budget to fix those computers instead of buying new ones, especially if your unit runs XP or better. It certainly is significantly more cost effective.

posted by : Jim B., 11 August 2010 Complain about this comment
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