PC SALES are "falling off a cliff" as shares of Intel and AMD tumble.

According to Marketwatch, US analysts unanimously voiced concerns after AMD and Intel shares slumped. Market analysts agreed that the deceleration in PC orders was to blame, with some also noting DRAM supply constraints.

Baird analyst Tristan Gerra pushed Intel down into neutral territory from outperforming. One J P Morgan analyst even went so far as to suggest that PC sales have fallen off a cliff, based upon his checks with sources in Taiwan.

Evidence from Reuters confirms that PC sales are definitely taking a big hit. Acer had recently managed to work its way up to becoming the number one PC vendor globally and was reported to be on its way up in the laptop rankings. Now the company has seen a big chunk of its sales fall off and lower stock prices. The company took a 38 per cent year on year decrease in sales and its shares opened 4.6 per cent lower after reporting the decline.

What gives with PC sales? We reported back in May that PC sales were heading for a slump, in Europe at least. Big brand PC manufacturers started cutting back on parts orders and Taiwan was shipping fewer components.

But just a couple of months later in July we reported that PC sales were up in Europe. Market tracking company Context revealed that sales of desktops, notebooks and servers grew 10 per cent compared to last year.

By: DocMemory
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