Weak PC sales: Are economic factors the culprit or Apple?

Leading technology vendors, including Hewlett-Packard, IBM, and Dell, said that companies are currently spending heavily on technology, but consumer spending has lagged. In the fourth quarter of last year, sales of servers, storage, and network equipment increased at a double-digit rate; consumer PC spending had a negative growth.

On Tuesday, HP released its most recent quarterly financial report, showing that its hardware sales increased by 22% year-on-year; Dell said last week that its business grew by 12% year-over-year, and IBM said last month that hardware revenue increased by 21% year-on-year.

Consumer spending in the hardware sector is unsatisfactory, but Apple's exception, its quarterly earnings report last month, revenue growth of 71% year-on-year, which last quarter sales of 7.33 million iPad contributed.

HP pointed out that while PC spending for businesses increased by 11%, sales of personal systems group PCs, including personal and corporate PC sales, fell 1% year-on-year. Dell said sales in its consumer segment fell 8% year-on-year.

Analysts pointed out that there are many factors that affect consumers' purchases of HP and Dell PCs. Among them are: Apple dominates the market, the economy is sluggish, different Android tablets are available, and a large number of manufacturers sell PCs for discounts.

HP CEO Li Aike did not attribute its decline in PC sales to fierce competition from competing products but blamed it on the economy, pointing out that the consumer PC market is still weak.

Some analysts believe that Apple is a factor in the weakness of PC sales. Rob Enderle, an analyst at the Enderle Group, a market research firm, said: "Independent companies have strong spending, but strong iPad sales have eroded the consumer PC business." Forrester Research analyst Andrew Bartels, a market research firm ) Also holds a similar view, value the apple. He said: "User demand has shifted from PC to iPad."

Market research firm IDC analyst Crawford Del Prete (Crawford Del Prete) believes that low consumer demand is the main reason. He said that Apple's iPad may affect the low-end PC market, but HP's failure to provide discount products from other vendors is also one of the reasons. This is the reason for HP's revenue decline and operating profit growth.

Bartles pointed out that HP's potential business growth is not as strong as expected, but the acquisition of 3Com last year benefited a lot. HP's router and switch business grew by 30%, but overall corporate technology spending fell.

According to IDC, the global PC market continued to decline in the fourth quarter of 2010 due to the economic downturn and the continuous emergence of tablet PCs. Global PC shipments increased by only 2.7% year-on-year.

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