Published on the 14/10/2015 | Written by Beverley Head

Personal computer shipments slumped 7.7 percent in the third quarter of the year according to Gartner, with demand for desktops waning faster than mobile devices. Analyst Mikaki Kitagawa sheeted at least some of the blame to the almost 10 percent hike in prices that many international users have faced as a result of the strengthening $US.

The results also indicate that Windows 10 which was released during the quarter has not had a knock on effect on hardware sales, with organisations and individuals tending to upgrade their operating system but on their existing machines. Gartner is forecasting soft PC demand through to the end of the year, with some stability forecast for 2016.

However if worldwide semiconductor demand is any guide, 2016 might not be a bumper year for hardware either.

Semiconductor demand is generally accepted as a leading indicator of the health of the hardware market. But Gartner is now forecasting a 0.8 percent decline this year, to $US337.8 billion – despite the strong $US.

It is, according to the analyst, the first fall since 2012.

Gartner said that; “Global economic headwinds, such as the slowing Chinese economy and the strong dollar, are pushing up the cost of electronic equipment in regions including Western Europe and Japan. This is leading to a reduction in outright sales and also encouraging buyers to shift to lower-cost equipment in these markets.”

While it’s more optimistic about 2016 – forecasting 1.9 percent growth – it warns of an oversupply in DRAM which will at least help to keep a lid on prices.

Earlier this month the Semiconductor Industry Association – which is the peak industry body for the US chip making industry – said that August sales fell 0.5 percent compared to the previous month. However the slowdown has to be seen in the context of 2014 having been a record year for semiconductor sales worldwide.