IDC reports 22.7% fall in PC sales due to HDD shortages

A record has been released by IDC stating that due to the supply shortage with subsequent price inflation of the hard disk drives bundled with a sudden surge in Dollar value and weekend Global growth, sales for personal computers have taken a downwards slope of up to 22.7% in Q4 2011.

As per what IDC Senior Analyst Kiran Kumar has said, “The HDD scenario posed an immense challenge starting October when the consumer & SMB growth was the strongest. The non-branded PC market was reduced to less than 2/3rd of its size as HDDs were available in the market with a 100% price increment, coupled with the dollar surge, which further wiped off any chances of carrying the momentum forward in the 3 months of Q4 2011”. He continues “Desktops have been on the road to oblivion for a few years now in the U.S and Western European markets; the rest of the world just seems to be catching up. We definitely notice a glaring shift in the spending patterns of consumers. A recent IDC ConsumerScape survey further suggests more consumers are twice as likely to buy a Laptop, Netbook or a Media Tablet (likes of iPad) rather than a traditional desktop computer.”

However, as far as price increment is concerned, I am sure the end users will agree that it was more than 100%, seeing that the price of 1TB drives that usually cost around Rs. 3,600 in average was pitched for as high as Rs. 7,000- Rs. 8,000 after the Thailand floods. That being said, I don’t agree with desktop being “on the road to oblivion”. I am not really sure how the survey was made and I will agree that some people have chosen a notebook over the desktop for certain reasons; however, I am sure that the number is as not so bad that will use the word “oblivion”. Desktop PCs going into oblivion is something some people have been saying- especially by the technology beat media guys- for more than a decade even in India. End result? We have desktop replacement units, notebooks, netbooks, tablets and next-gen consoles”- yet desktop PC stayed.

Adiwaita Menon, Associate Research Director of IDC has made an official comment on the company statement that “Having said that, we are still looking at a double-digit growth for CY 2012 as commoditization is helping consumer PC market to spread into tier III and tier IV cities because of increase in buying power and education level across states.”

For those who do not know, (IDC) International Data Corporation is one of the global providers for market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets.

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