This year could see the sharpest drop in the PC industry ever, according to research firm Gartner. This prediction kicked off a week that saw the global recession deepen, the Dow dip below 7000, Apple reveal a yawn-inspiring new hardware lineup, Microsoft still racing to replace its underperforming Vista with Windows 7, and job cuts hit tech companies around the world.
But the PC market is not all doom and gloom.
Yes, Gartner expects PC shipments to plummet 11.9 percent in 2009. That would make it a much steeper decline than the current record, when the bursting dot-com bubble let PC sales slip 3.2 percent in 2001.
Yet one kind of PC is ready for takeoff. Shipments of the pint-sized and portable "netbooks" could jump by 80 percent this year to 21 million units, Gartner says. The Consumer Electronics Association expects a similar leap in netbook sales.
Netbooks will "cushion the overall PC market slowdown, but they remain too few to prevent the market's steep decline," says Gartner's report. "Mature markets continue to be the primary consumers of [netbooks] but as prices continue to fall, they are likely to attract increasing numbers of emerging market buyers."