Wednesday, 21 May 2008

Rapid Growth for UMDs in 2008, Desktop PC Sales Slow

As technology companies adjust to the macro-economic effects of tightened credit, flat wage growth, and job losses, 2008 looks to be a year where Ultra Mobile Devices (UMD) continue to flush out their ecosystems, and notebooks and emerging markets assert themselves on the PC side.

According to an In-Stat report, sales growth for UMDs is expected to reach 72.6% in 2008.

Mobile PC growth is forecast to be 15.4% in 2008. However, desktop PC growth is forecast to flatten in 2008, but recover nicely by 2010.

UMDs encompass ultra mobile PCs, mobile Internet devices, a percentage of high-end smartphones, and a percentage of high-end personal media players.

"For UMDs, concerns remain in the areas of infrastructure and the availability of connectivity beyond Wi-Fi" says Ian Lao, In-Stat analyst.

Other concerns highlighted by Lao include:

1. The development of sustainable business models (whereby all levels of the ecosystem may make money without crushing the consumer with high prices)

2. Form factors that are conducive to, and align tightly with, specific usages

3. Interfaces that are intuitive and provide pleasant, repeatable user experiences.