Smartphones Outsell PCs: IDC

New York: For the first time ever, smartphones such as Apple Inc.’s iPhone are outselling personal computers, according to a report by research group IDC that was released Monday.

Worldwide, consumer electronics makers shipped 100.9 million smartphones in the last three months of 2010, an 87 per cent jump from a year earlier. PC shipments were weaker than expected, edging up just 3 per cent to 92.1 million.

The two trends aren’t necessarily related, said IDC analyst Ramon Llamas. smartphones and PCs serve different purposes, and consumers generally need both. PCs remain important for writing papers, editing photos and creating other kinds of content.

PC sales are, however, have been hurt by competition from tablet computers - namely Apple’s iPad.

Meanwhile, smartphones are getting a boost from falling prices. It’s not uncommon to find brand-new models on sale for $100, a price Llamas says consumers are willing to pay. Some retailers, such as Amazon.com Inc., are willing to offer smartphones at steep discounts, sometimes for as little as a penny.

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Smart phone sales are also getting a push from growing interest in Google Inc.’s Android software, which powers dozens of phones made by HTC Corp., Samsung Electronics Co. Ltd., Motorola Mobility Holdings Inc. and others.

“Android continues to gain by leaps and bounds, helping to drive the smart phone market,” Llamas said.

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