PC sales will rise by end of the year

Market research analyst firm Gartner predicts that the fourth quarter of this year will bring the beginning of a rebound that will gain momentum next year. With a stronger fourth quarter, the industry is on pace to move 274 million PCs worldwide this year. While that's still a 6 percent drop from last year's total shipments of 292 million units, it's not as bad as once thought. Earlier this year, Gartner was predicting a 9.2-percent decline for the year.
Gartner says next year's shipments will swing into positive territory, predicting growth of 10.3 percent. But its analysts say it's too soon to assume the worst is over. People are still delaying purchases while the overall economic outlook remains uncertain.
Customers will begin buying again, but not until later this year, and picking up through 2010 and 2011, according to Gartner Research Director George Shiffler. He also cautioned that the first wide availability of Windows 7 won't spur as many new sales as may be expected.
On Wall Street, there is a phenomenon known as a "dead cat bounce." A dead cat bounce occurs the day after a stock completely crashes: it gains a few points. The reason for this term is that even a dead cat will bounce if it falls from high enough.

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