Laptops thriving as PC market shrinks

Sales of laptop computers continued to go through the roof over the past quarter as consumers and businesses took advantage of falling prices and better functionality.

Laptop sales surged 20.8 per cent to 58,098 units shipped in the first quarter of 2006 from 48,043 a year earlier, figures from market analysts IDC show. Shipments of desktop PCs, in comparison, fell 14.8 per cent to 71,584 from 84,039, which was enough to cause the overall market to contract.

Total PC shipments, which also included servers, for the first quarter were 134,093 compared with 136,076 for 2005, a decline of 1.5 per cent.

IDC attributed the decline to the fact that consumers and businesses are in the middle of a "refresh cycle".

Liam Gunson, IDC's senior analyst of PC hardware, said most buyers purchased new machines after Y2K in 2000 and, after a typical lifespan of three to four years, then refreshed again between 2003 and 2005.

He predicted overall PC sales would be flat until the next refresh cycle kicked in around 2008. But laptop sales would continue to be strong.

"We expect the transition between desktops and laptops to continue, and laptops will continue to show positive growth even through the flat times," Gunson said.

Laptops have surged because prices have come down, with some units available for less than $1000.

Desktops have also traditionally been more powerful but laptops are now generally on a par in terms of functionality.

"You can do everything you really need to do these days on a notebook. They're more than capable of handling people's needs," Gunson said.

While laptop sales were particularly strong with consumers, businesses were also starting to realise mobility and productivity gains.

"It's not so much having people working better but working more. That is an advantage and a reason why businesses will buy," he said.