iMac sales shudder to a halt

Apple's iMac inventory is piling up as the demand for consumer PCs continues to slow.

Following the launch of the radically redesigned computer in January retailers had experienced the opposite effect, with demand far outweighing supply.

Distribution giant Ingram Micro has over 2,600 of the machines in stock, according to US reports. The company only received 200 orders for units last week meaning it has more than 15 weeks' worth of stock to shift.

Last week analysts said they have lost hope for a rebound in the languishing PC market this year, as recent profit warnings from AMD, Apple and Intel continue to demonstrate the weakness of the desktop market.

Lehman Brothers analyst Dan Niles cut his estimates for worldwide growth in 2002 from seven per cent to an almost stagnant two per cent.

Growth for 2003 is now predicted to be just three per cent, rather than the nine per cent previously anticipated.