PC Computer Sales Down, Used Market Looks Brighter - Computers

April is the time that PC computer manufacturers and other high-tech industries announce their first quarter (Q1) results. The numbers for 2009 do not bode well for sales of new machines, but may indicate a boost in the secondary computer market.

First - the numbers.

PC Shipments Decrease Around the World

Research firm Gartner released its report on 2009 Q1 global shipments of computers on April 15. According to Gartner, global shipments have dropped 6.5% compared to the same time in 2008. Researchers at IDC had a slightly higher number, saying that the drop was actually 7.1%.

Both reports note that PC computer sales in the U.S. were stronger than the global average, but still nothing to celebrate. As Gartner's research director, George Shiffler noted: "We are seeing some evidence of channel inventory restocking, particularly in the U.S... This restocking should not be interpreted as a recovery in PC end-user demand; it's still unclear if the global PC market has hit the bottom."

In other words, the sales drop is real and may continue. Especially as the economy goes down, this will start to affect used computer sales.

So, what does any of this have to do with used computers?

The Secondary Market for PC Computers and Parts

The last research I could find on the secondary computer market dates back to 2005. At that time, the talk was about the strength of the secondary market. While I have no new research to back up this assertion, I think that the current drop in new PC sales shows how robust the secondary market is. Businesses may be putting off new purchases, but they still need to service and augment their current network infrastructure and for those functions, the used market is ideal.

Instead of new equipment, many are relying on the secondary market to provide them with fully functional used laptops and desktops. In this era of cost cutting and eco-angst, "used" does not have the negative connotation it once did.

One reason for this change in attitude is that, when it comes to technology, "used" is often synonymous with "refurbished." Refurbished machines are tested, cleaned up and restored to the original manufacturer's specifications. Translation - they perform as well or better than an equivalent new machine. Even some major "primary" retailers sell refurbished units, so demand must be worth the effort of acquiring, restoring and stocking these items.

The secondary market is also the place to go for affordable part and components that are no longer available from the manufacturer. Again, sales of these items may be having an impact on new computer sales. Instead of trashing an old machine, many people are choosing to upgrade their existing computer with more memory or bigger hard drives.

The bottom line? PC computer sales may be down on the primary side of the market, but if researchers were to update their studies on the secondary market, they would very likely find a different and more positive story.