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IDC: Slow Corporate Refresh Cycle a Drag on PC Market

If you're waiting longer to refresh the PCs in your organization, you're not alone.

According to new forecasts released this week by IDC, lengthy refresh cycles are contributing to a gloomy outlook for personal computing devices.

At this point in the year, IDC is predicting that total unit shipments of traditional PCs, tablets and workstations will decline by 3.9 percent in 2018. The compound annual growth rate (CAGR), if growth is the right term, is -1.5 percent for the next five years.

Shipments for this year are expected to hit 407 million devices. By 2022, IDC is lowering that figure to 383 million devices.

Among the sub-sectors, commercial-focused PCs are a critical laggard. "Desktop PCs are expected to see a CAGR of -2.7% as most of these devices are destined for the commercial market where lengthy refresh cycles and saturation are contributing to a steady decline in shipments," the Framingham, Mass.-based market research firm said in a statement.

Some other sectors are predicted to do even worse over the next five years. Slate tablets have a five-year CAGR of -5.3 percent. Traditional notebooks and mobile workstations are expected to bomb even more, with a five-year CAGR of -9.1 percent.

Those organizations that are refreshing their PC inventory over the next five years are expected to put more of their money into two distinct categories.

"While the ramp of convertibles and detachables has been more crawl than run, the category on the whole continues to build momentum," IDC researcher Linn Huang said in a statement. The ultraslim notebook category is expected to have a CAGR of 7.8 percent, while the 2-in-1 device category has a projected CAGR of 9.3 percent, according to IDC.

Posted by Scott Bekker on 08/31/2018 at 11:24 AM


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