IDC: PC demand not as bad as feared

The figures for first-quarter PC shipments are in and, just as Intel hinted during its earnings call yesterday, a few sweet spots are still thriving in the PC market, notably consumer sales and the rise of small-form notebooks.

Hewlett-Packard is at the top of the list, with a 20.5 percent market share worldwide for personal computers, according to IDC figures released today. Dell is second with 13.6 percent and Acer, which continues to expand in the U.S., is in a close third with 11.6 percent.

While Dell saw a 16.7 percent decline in shipments during the quarter, both HP and Acer saw growth of 2.9 percent and 6.8 percent, respectively. Fifth-place Toshiba saw its year-over-year shipments rise by 11.6 percent.

IDC said the figures offer "a glimmer of hope" that consumer spending isn't as week as previously suggested and that key segments - notable consumer notebooks - offer opportunities for growth as low prices continue to drive shipments. In a statement, Loren Loverde, program director for IDC’s Worldwide Quarterly PC Tracker, said:

Tight credit and economic concerns have certainly taken a toll on PC shipments in the last couple quarters, but the move to portables, fueled by Mini Notebooks and falling prices, has mitigated the impact. Following a drawdown in inventory throughout the supply chain, we expect more stable production over the next couple quarters, with growth returning around the end of the year.

Yesterday, Intel - considered to be a bellweather in the technology industry - reported better-than-expected first quarter results and said the PC industry appears to finally be stabilizing. "We believe PC sales bottomed out during the first quarter and that the industry is returning to normal seasonal patterns," Intel CEO Paul Otellini said.