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November 9, 2012

Low end desktops and PCs dominate the market: report

Mainstream desktop PCs is expected to account for 46.9% of the market each by the year-end, while the top-end PCs will account for only 6%

By CBR Staff Writer

The demand for lower-end desktop PCs and notebook computers continue to dominate over high end models during this year, accounting largest chunk of PC shipment, according to IHS iSuppli.

According to IHS iSuppli Compute Platforms Topical Report, lower-end computers classified in either the "mainstream" category or the "value" the mainstream desktop PCs is expected to account for 46.9% of the market each by the year-end, while the top-end PCs will account for only 6%.

In notebook computer segment, the value notebook segment will account 46.8% of the market, mainstream laptops will account 44% and performance models will account just 9.2% of the market.

According to the report, the value segment will continue to lag behind in the market with performance PCs continuing to dominate the market.

IHS senior analyst for compute platforms Peter Lin said for the desktop as well as the notebook PC market, the continuing domination of lower-end computers is due to the rising performance overall of PCs and their greater affordability to the purchasing public.

"While the highest and most potent specifications are still reserved for expensive PCs belonging to the performance sector, computers now in the mainstream or value segments are powerful in their own right, and cannot be deemed as throwaway models," Lin said.

"Instead, these more affordable systems feature current-generation technologies that prove adequate for most uses, or boast increased microprocessor power that raises the performance bar even for seemingly rudimentary machines."

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The analysis found that performance is the primary consideration for consumers while buying over price and it is reflected in the machine’s processor, memory, hard disk and graphics capabilities.

Mainstream PCs come with the most common specs and functionalities available on the market with the models come with competitive prices sporting the latest-generation technology, though not the fastest speeds, the report revealed.

With demand for processing speed increasing computers will be powered by increased computing capacity.

The analysts forecast that Quad-core processors will power 179 million notebook PCs by 2016 which would account 59% of the notebook available in the market.

During the forecast period, all desktop PCs will be running 64-bit operating systems, making the slower and older 32-bit operating system obsolete.

Despite flurry of release of ultrabooks and other ultrathin computers they are yet to make an impact on the market, which could be due to popularity of devices like Apple’s iPad, and other smartphones with near-PC-like features, IHS iSuppli.

Gartner report earlier had revealed that Worldwide PC shipments declined sharply by over 8% during the third quarter of this year compared to last year ahead of much anticipated Windows 8 launch later this year.

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