Record Shipments of Notebooks to the U.S. Consumer Market in 2Q09: Consumer Appetite for Laptops Remains Strong Despite Economic Malaise

FRAMINGHAM, Mass.--(Business Wire)--
Notebooks represented three out of four computers shipped to the U.S. consumer
market during the second quarter of 2009 (2Q09). The preliminary figures from
IDC`s PC Tracker indicate that the consumer appetite for mobile computers
remains unchallenged despite the economic malaise affecting general demand in
the U.S. market.

The preliminary data shows that the U.S. PC market, which includes desktops and
laptops, contracted by just 1.4% compared to an earlier projection of -3.1%, and
this result can be attributed entirely to the consumer notebook market.

Of the four major PC markets assessed in the preliminary results - consumer
portables, consumer desktops, commercial portables and commercial desktops -
only consumer portables managed positive growth while the others had moderate to
severe contraction. What is even more indicative of unabated consumer attraction
to mobile computing is that the consumer notebook growth is estimated at a solid
63% year on year. While the commercial desktop and notebook shipments fell by
25% as a result of substantially reduced IT budgets, and the consumer desktop
market was down by 9%, the consumer notebook market expanded to a new record of
more than 6.3 million units.

Although the performance of the consumer laptop market defies the economic
realities facing the average consumer, several factors are conspiring to keep
that market in positive territory. First is the fact that notebooks are
must-have products that combine entertainment, communications, and productivity
features required by consumers. As such, even with economic stress, consumers
will continue to invest in such tools to enhance their entertainment,
educational, and professional environments. The second factor stimulating demand
is pricing. Notebook prices continue to fall with high-performance units
available at bargain prices, often below $600. An environment of eroding prices
has been made possible by continued improvements in manufacturing capabilities,
a reduction in component prices, and tight competition among vendors. The third
factor that is helping the consumer notebook market maintain momentum is the
emergence of the mininotebook or netbook form factor. This is a product that is
designed for maximum mobility at a fraction of the standard notebook price.
Finally, the proliferation of activity in the consumer notebook market has led
to the emergence of new channels, in particular the telecom carriers, who are
now playing a critical role in the distribution of netbooks to their own
customers in an effort to bundle new services or even as an incentive to sign up
new customers.

With the desktop market severely cannibalized by laptops and relegated to niche
markets, the U.S. mobile ratio, or the share of notebooks in total PC shipments,
has reached the 58.9% mark in 2Q09. Within the consumer market alone, that ratio
is now 74.6%, up from 69% in the previous quarter and 62% in the year-ago
quarter. "With this type of performance, vendors will have to focus their
attention on consumer segmentation and understanding user behavior so as to
design products that meet the needs of specific demographics," says David Daoud,
research manager in IDC's Personal Computing, PC Tracker and Green IT programs.
"Vendors will also have to articulate more compelling strategies to market
accessories, peripherals, software, and other products and services that enhance
the consumer experience."

To discuss the preliminary data on the U.S. PC market or to discuss the netbook
and accessories markets, please contact David Daoud at 508-988-7502 or at
ddaoud@idc.com.

About IDC

IDC is the premier global provider of market intelligence, advisory services,
and events for the information technology, telecommunications, and consumer
technology markets. IDC helps IT professionals, business executives, and the
investment community make fact-based decisions on technology purchases and
business strategy. More than 1,000 IDC analysts provide global, regional, and
local expertise on technology and industry opportunities and trends in over 110
countries. For more than 45 years, IDC has provided strategic insights to help
our clients achieve their key business objectives. IDC is a subsidiary of IDG,
the world's leading technology media, research, and events company. You can
learn more about IDC by visiting www.idc.com.

All product and company names may be trademarks or registered trademarks of
their respective holders.

IDC
David Daoud, 508-988-7502
ddaoud@idc.com
or
Michael Shirer, 508-935-4200
press@idc.com

Copyright Business Wire 2009