IDC has slashed its forecasts for the PC market in 2002 and 2003, citing weakening demand in both the business and consumer sectors.
Total worldwide PC shipments are now predicted to reach 135.5 million in 2002, showing growth of just 1.1 per cent, and then to grow by 8.4 per cent in 2003, IDC said.
Those figures compare with IDC's June forecast of 4.7 per cent growth in 2002 and 11.1 per cent in 2003.
In the U.S. the forecast is even worse, with 0.5 per cent growth predicted for 2002 and 4.2 per cent for 2003.
Asia-Pacific is the one region that has seen growth, with larger markets like China, Australia and India likely to keep the region's growth above 10 per cent for 2002, IDC said.
The only sectors still spending on PCs are the public sector and small businesses, IDC said. Consumers and medium-sized to large companies continue to postpone spending. While consumers may begin cautious purchasing later this year, it will be mid-2003 before the business and consumer markets pick up completely, IDC said.
The decline of the stock market has raised the cost of capital, dampening corporate spending. Consumers, meanwhile, are watching the job market cautiously, according to the analyst.