IT News - Research firms highlight slow-down in PC market

The global market for personal computers took a dive in 1996 generating the slowest rate of growth for years. According to figures published by market research firm, IDC, worldwide shipments rose 16 per cent last year, making it the first year since 1991 in which sales did not increase by at least 20 per cent.

IT analysts Dataquest put the 1996 growth rate higher, at 18 per cent, but the story remains the same. It said the slow-down in PC sales was due to declining growth in the consumer market.

But Scott Miller, senior PC analyst at Dataquest, said, “Our ongoing consumer research in the US shows increased interest in PC ownership.”

And Fiona MacCrae, personal systems analyst at IDC, also played down the significance of the receding growth figures. “The business market has just been through a major upgrade cycle,” she said, “so a slow-down is to be expected”.

Some PC manufacturers fared better than others in 1996, though. Compaq Computer maintained its dominance for the third consecutive year. And IBM gained market share for the first time since 1993, IDC said.

Apple Computer continued to lose ground, while Hewlett-Packard was attained the top five list of PC vendors worldwide.

IDC warned that, despite continued rapid expansion of the PC market in emerging markets, like Japan, unfavourable economic conditions in other, key countries, would continue to have a balancing effect on the wider market.

“The overall health of the PC market is good, but some areas are suffering due to their sluggish economies,” said Eric Lewis, manager of personal systems research for IDC.