The ongoing economic crisis could lead to the collapse of some small PC makers, as the industry consolidates, according research firm IDC. This comes weeks after IDC's prediction of slower IT spending for the next four years.
Contrary to what one might expect, big players such as HP, Dell and Acer will not be gobbling up smaller vendors this time around, according to Richard Shim, personal computing research manager at IDC. "It won't be so much about acquisition but the smaller players will just go away," noted Shim. He says this is inevitable because everyone is "beating each other up in price."
What's more, in the coming weeks shipments of PCs outside of the United States will begin to slow, as the effects of the current crisis on PC shipments spreads globally. IDC thinks that the volume of shipments will come down in 2009, along with lower average sales prices, and as a result, less revenue for PC makers.
A lower price should logically mean better opportunities for consumers to upgrade or acquire new computers--for those who can afford it. The current economic state means that organizations have less cash to spare; and even those who are able to purchase new technology might be reluctant to spend unless it's absolutely necessary.
For more on this story:
- check out this article from Computerworld
- check out this article from eWeek
Related Article:
IDC: Slower IT spending expected for the next four years
