iSuppli the first major market research firm to drastically cut its PC outlook for 2009. Amid rapidly deteriorating conditions in the global economy and financial system iSuppli said that it has reduced the expected growth rate from 11.9% to 4.3%. The company believes the market will improve in 2010, but fall behind previous expectations as well.

The shipment forecast translates in a nearly two-thirds reduction of estimated growth, which was prompted by a global economy that changed dramatically “and in many ways irrevocably.” iSuppli analyst Matthew Wilkins said that the magnitude of the banking collapse has been so great that its impact on the availability of credit has affected large corporations, small businesses and people on the street.

“The result of the financial turmoil is less money to spend, and often that money is itself more expensive,” Wilkins said. “With less money to spend, application markets, like PCs, have been impacted.” While the PC market has consistently posted growth rates of more than 10% over the past five years, already 2008 may be different.

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