PC Forecast Cut for '09, Sales Seen Down 5.3%

A top research firm cut its forecasts for 2009 personal computer sales, expecting shipment value to drop 5.3 percent as the weak economy discourages some buyers and tight credit thwarts others.

IDC, which tracks sales of technology products, previously forecast that global PC shipments would rise 4.5 percent next year.

"What has changed is primarily a reaction to the economy," said Loren Loverde, an analyst with IDC, which last issued its forecasts for PC sales about three months ago.

Total unit shipments of machines from companies including Hewlett-Packard , Dell , Lenovo Group , Acer and Apple Inc are likely to rise 3.8 percent next year, down from 12.4 percent growth in 2008, IDC said.

IDC had previously forecast unit shipment growth of 13.7 percent.

There is a discrepancy between the growth in units sold and value of those PCs because prices are falling as consumers and businesses budget less for new PCs, Loverde said.

"Buyers are watching their pockets a little more closely. They are less inclined to upgrade or get that faster processor," Loverde said. The credit crunch is also hurting the industry, he said.

"A company or individual might want a PC. If they could get the same credit terms as last year they might buy a PC. but credit is tighter," he said. "Removing credit really has an impact on who can buy."

HP shares were down 2.3 percent in early trading on the New York Stock Exchange, while Dell shares fell 4 percent and Apple shares fell 2.6 percent on Nasdaq. Lenovo fell 3.2 percent on the Hong Kong Stock Exchange, while Acer shares were flat.

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