Woe be the PC maker. That seems to be the message coming from a number of analysts, slashing expectations in the face of growing tablet demand. The latest to adopt shrinking expectations is Morgan Stanley analyst Katy Huberty. Huberty cut her PC growth estimates for 2011 to two percent, down from seven percent. Tablets will cut 29 percent of PC demand, she estimates.
Acer, maker of many low-cost netbook PCs, could be the hardest hit. According to IDC, the PC maker’s first quarter 2011 U.S. shipments fell 42 percent, compared to the same period in 2010. Dell, who Huberty says faces the “greatest risk” due to falling commercial demand and rising supply costs, saw first-quarter growth fall 11.8 percent.