PCs showing 'severe slump' as HP slips to No. 2

Peter Hortensius, president of Lenovo's product group, and David Schmoock, president of Lenovo's North American operations, demo the company's new Windows RT convertible PC at a New York event.

(Credit: Rich Brown/CNET ) It's even uglier than thought in the PC market, new data today shows.

IDC says the global computer market "withdrew sharply" in the third quarter, with shipments falling 8.6 percent from the prior year. The tech research firm had expected a decline of just 3.8 percent -- what it called a relatively quiet quarter as companies prepare for the upcoming Windows 8 launch.

Rival Gartner, meanwhile, said shipments slid 8.3 percent to 87.5 million units, worse than its expectation for a 6.5 percent decline.

Both firms noted that back-to-school promotions weren't enough to drive sales, something that showed the "vulnerability of PCs and the loss of mindshare among buyers," according to IDC. Tablets and smartphones have been putting pressure on the market, as has uncertainty over the global economy and the impact of Windows 8.

Here's what Jay Chou, IDC senior research analyst, had to say about the steep drop:

"PCs are going through a severe slump. The industry had already weathered a rough 2Q12, and now 3Q12 was even worse. A weak global economy as well as questions about PC market saturation and delayed replacement cycles are certainly a factor, ... [Read more]