Slow Economy Forces Manufacturers Slash PC Prices

Figures released by a pair of Analyst Firms show that the PC market is growing fast although the average selling price of computers continue to fall and made worst by the current global market conditions.

Gartner and IDC say that worldwide PC markets increased by more than 15 percent in the second quarter of 2008 with increase shipments of laptops making up for the nose-diving number of desktops sold.

Every region outside US registered double digit growth with laptop sales growing a whopping 40 percent year on year.

IDC warned that while big manufacturers will eventually escape relatively unscathed from the current situation by squeezing margins even further, smaller PC manufacturers could disappear altogether if economic conditions do not improve rapidly since they do not have the same type of leverage.

Gartner also published a list of the top worldwide PC manufacturers and HP is still holding the top spot although Dell is rapidly closing the gap between the two with a 2.5 percent difference (18.1 percent vs 15.6 percent) and grew by 0.8 percent.

Three Asian companies - Lenovo, Acer and Toshiba - make up the rest top five list.

Apple was also a bright performer with PC shipments in the second quarter 2008 increasing by nearly 40 percent pushing the Cupertino-based manufacturer to the third spot in terms of PC shipment volume in the US.