IDC has increased its forecast for PC shipments in 2004 from a figure showing 13.5% annual growth to 176.5 mln units which would reflect 14.2% growth compared with 2003. The company said it had been wrong with its June estimate of 13.5%, which had not factored in increasing commercial demand. IDC said that commercial PC shipments had grown 17.2% in Q2, the highest growth since mid-1999. Although worldwide consumer growth met expectations in Q2, growth is expected to slow from near 20% annual growth in the second half of 2003 to only 9% annual growth in the second half of 2004, IDC said, but despite this the commercial replacement cycle would help drive 2004 to a strong year. But at the same time as raising its 2004 forecast IDC lowered its 2005 annual growth estimate by 0.2% to 10.5% and in the years thereafter IDC is predicting single-digit annual growth.