This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

A Day After Dell, PC Sales Estimates Rise

Bargain-happy consumers boosted PC sales in the second quarter, and will probably do it again in the third and fourth quarters, market researcher Gartner reported on Friday.

But the expected sales bump may also challenge margins. That's because there are signs that component prices are beginning to stabilize, so OEMs will no longer have the luxury of passing their savings along to consumers, said Gartner analyst Kiyomi Yamada.

The stronger-than-expected second-quarter PC sales, which were noted by Delll (DELL) in its second-quarter earnings announcement earlier in the week, prompted Gartner to up its PC sales forecast slightly for the rest of the year, but its outlook remains cautious.

Worldwide PC shipments are forecast to reach 39.8 million units in the third quarter of 2003, a 9.6 percent increase over the third quarter of 2002. Gartner had been expecting sales to grow by 8%. Gartner analysts project PC shipments to reach 161.3 million units in 2003, an 8.9% increase from 2002. Its previous forecast was for yearly growth of 7.2%.

Gartner's numbers include shipments of desktop and notebook computers, but not servers or handheld devices.

While consumers purchased PCs, especially notebooks, in larger-than-expected numbers, business purchases remained unimpressive, and may stay that way for the rest of the year.

"A sustained PC market recovery requires a return to business IT spending, which, in turn, is dependant on a significant improvement in economic conditions," said George Shiffler, principal analyst for Gartner's computing platforms and economics research. "Despite some recent encouraging signs, economists are still guarded in their outlook for the second half of the year, so the prospects for a significant business PC recovery by year end remain questionable."

Also guarded was Dell CEO Michael Dell: Small businesses and consumers have reacted faster than enterprises to price cutting, he said. "There haven't been a whole lot of reasons for companies to increase their IT budgets," Dell said during a conference call.

Roger Kay, an analyst with IDC, said his company's forecast won't be ready for a few more weeks, but he agreed that second-quarter PC sales were stronger than he had expected.

He added that strong sales of notebook PCs to U.S. consumers will likely prompt IDC to raise its yearly PC forecast for the U.S., but the worldwide picture was still unclear.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,979.13 +59.54 0.35%
S&P 500 1,986.51 +4.91 0.25%
NASDAQ 4,526.4820 -1.0320 -0.02%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs