PC Review: January 2013

This IDC update presents IDC's latest research and includes analyses of the global PC industry in 2012 and our outlook heading into 2013. In 2012, PC makers struggled with a weak global market characterized by economic malaise across most regions. The ailing economy suppressed demand in both consumer and commercial segments, while alternative devices such as tablets and smartphones continued to pull consumer budgets away from PCs in emerging markets.

IDC expects the PC industry to regain some momentum with the flip of the calendar year. While the launch of Windows 8 in 4Q12 lacked sufficient coordination between Microsoft and its device-making and channel partners, the full potential of the new OS as a demand driver has yet to be determined. As Windows 8 gains traction with consumers, demand for touch-based consumer PCs should strengthen.

Microsoft will also play a key role in driving demand for PCs in the commercial market. With Windows XP heading toward end of life (EOL) in 2014, commercial demand could see a significant boost this year. Enterprises and other commercial organizations running XP will look to replenish hardware and replace old computers. However, we expect the vast majority of these buyers to transition to Windows 7 and not Windows 8.

This document looks back on 2012, assesses the current market climate, and provides IDC's outlook for the global PC industry for 2013 and beyond. Highlights include:

• Total 2012 PC shipments are expected to reach approximately 354 million units, representing a 2.6% decline from the previous year.
• Consumer portable PC shipments are expected to underperform previous-year totals by about 0.4%, marking the first contraction of this segment since 1997.
• PC OEMs are getting better at producing compelling touchscreen notebooks, but pricing issues and supply constraints could slow growth in 2013. Touchscreens currently carry a $35 (89.4%) cost adder compared with non-touchscreen displays at the 15.x-in. class.