IDC paints rosy PC market picture

Low cost PCs and the ongoing popularity of laptop computers will keep pushing computer sales in 2006, analyst firm IDC said in its projection for next year's PC market.

The firm projects 10.5 per cent growth in PC shipments for next year and raised its forecast for the last quarter of this year to a 15 per cent increase.

The growth comes despite a gloomy picture for PC replacements and disappointing economic growth.

Computer sales for the past years have exceeded expectations, noted Loren Loverde, director of IDC’s Worldwide Quarterly PC Tracker:

"The market recovery did not peak in 2004 as many expected but is still ongoing. The market may slow in 2006, but persistent growth over the past several years shows the appeal of low-cost and portable systems and the potential for both a longer recovery and a higher rate of long-term growth."

The US market remains the greatest stronghold for computer sales. IDC is somewhat less optimistic about Western Europe, where the economic outlook is soft amidst a weakened euro.

Japan showed strong results in recent quarters, but IDC questioned the durability of this peak. The Asia and Pacific region meanwhile is expected to remain a strong performer despite possible disruptions such as high oil prices, a potential slowdown of economic growth in China and other external factors including bird flu.