Desktop market finally turning around

Apple's iMac series is expected to represent 25 percent of the growth in desktop computers through the end of the year, according to Caris & Company analyst Robert Cihra. Desktops in general are said to be finally returning to positive growth this year, following several years of lackluster performance.

Apple's desktops have not been immune from the downturn, as shipment numbers declined by 12 percent last year. If the Caris & Company forecast is accurate, the company could see a three-percent gain year-over-year.

"We continue to model note/netbook accounting for greater than 90% of PC unit growth in 2010, but with desktops at least now looking like they’ve stopped eroding and can resume at least some low single-digit recovery after 2 years of decline, driven by emerging markets, corporate workhorse use and power gamers," Cihra said in a note circulated to investors. "But believe it or not, we estimate Apple’s iMac accounting for a full 1/4 of ALL desktop market growth in calendar year 2010."

New iMac introductions late last year helped boost sales, making Apple's 21.5-inch device the best-selling desktop in the fall. Shipments for the 27-inch model were delayed during the beginning of this year, although it is unclear if the constraints were due to strong demand or widespread complaints of problems with the LCD panel.

Cihra praises Apple for showing a much stronger ability to maintain its ASPs and gross margins than many of its competitors, avoiding the steep declines experienced by HP and Dell. The analyst expects Mac shipments to continue growing at 60 percent higher than the industry average through the end of the year. [via AppleInsider]

by MacNN Staff