EL SEGUNDO, CA -- First quarter PC shipments fell by the largest rate in the seven years, as sluggish desktop sales dragged total shipments down, says iSuppli Corp.

PC shipments in the first quarter of 2009 were 66.5 million units, down 8.1% year-over-year, and down 14.4% sequentially.

The desktop segment dropped 23% year-over-year, while notebook shipments grew 10% for the same period.

"The worldwide recession sparked by the credit crisis slammed PC shipments for the second quarter in succession during the first three months of 2009,” said Matthew Wilkins, principal analyst for compute platforms research at iSuppli. “The first-quarter performance of the worldwide PC market was worse than iSuppli had expected in its prior forecast, which called for a 4% decline in shipments compared to the same period in 2008. After a long period of immunity to the global downturn, the economic crisis finally has begun to impact the PC market.”

H-P, with 19.7% market share, remained on top turning in flat sales of 13 million units for the quarter.

Dell experienced an 18.7% drop in shipments, declining to 8.8 million units for the quarter. The company’s market share also declined to 13.2% but it maintained the number two position.
 
The remaining top five are Asian producers; Acer (11.1% market share), Lenovo (6.7% market share), and Toshiba (5.2% market share).

Both Dell and Lenovo experienced year-on-year decline. Toshiba made the largest gains, up 13.2% for the quarter, year-over-year.

With the drop in sales of desktops and more traditional notebooks, iSuppli forecasted that netbooks will continue to grow and should account for 14% of worldwide notebook PC shipments in 2009.