PC Manufacturers Face a Growth Challenge

The personal computer market, which shipped its 1 billionth unit in April, is on track to ship another billion by 2008, according to a study released today by Gartner Dataquest.

To reach that milestone, the market must combat falling sales brought on by a weak economy and a lack of new products.

The market went south in 2001 for the first time in more than 15 years. About 38.7 million PCs were shipped between April 2001 and April 2002, less than one-third the number shipped the previous year.

To expand PC sales, companies will have to offer machines that are smaller and less expensive than today’s computers, Gartner said in its report. Many consumers purchased new PCs in anticipation of the Year 2000 bug and have not needed to upgrade to new computers.

Gartner anticipates an annual growth rate of 9%, reaching the 2 billion mark by 2007 or early 2008.

Christine Frey