IDC sees more computer industry consolidation

Another round of consolidation in the computer industry looms as the deepening economic malaise forces a revision of global personal computer sales projections, according to market research company International Data Corp (IDC).

Personal computer shipments next year are forecast to rise 3.8 per cent to 313.9 million units, down from an earlier projected growth rate of 13.7 per cent.

IDC lowered its outlook for this year by a couple of percentage points to 12.4 per cent or 302.3 million units. Estimates were also lowered for 2010 to a 10.9 per cent growth rate at 348 million units.

'Consolidation is expected as personal computer makers tough out the competitive climate amid lower than expected volumes and thinner margins,' said Richard Shim, personal computing research manager at IDC. 'Declining shipment growth in the consumer market along with the relatively stagnant commercial market will lead to fewer opportunities and more intense competition.'

Lenovo Group, the fourth-largest personal computer supplier, has recently been the most vocal about exploring a strategic acquisition, following its purchase of International Business Machines Corp's personal computer division in 2005.

Lenovo president and chief executive William Amelio last month said making the right acquisition would help the company 'secure better supplies and improve cost position'.