PC unit growth to slow

23 November 2004 – New York (NY): PC unit growth has reached its peak in 2004, according to analysts at Merill Lynch.

The research group has estimated that after achieving 12 per cent unit growth in 2004, the industry would increase by 9 per cent in 2005, and by just 6 per cent in 2006.

It also said it expected PC revenue to slow from 6 per cent this year to about 2 per cent over the next two years with average prices declining 4 to 6 per cent.

"We see slightly better than normal sequential revenue growth in the fourth quarter but weaker comparisons in the second half of 2005," said Merill Lynch. "The industry will continue to look to notebooks for revenue relief; some vendors might even approach notebook-only approaches."