iSuppli revised its forecast on global PC shipments Tuesday, predicting a contraction of 4 percent this year to 287.3 million units shipped.

Previously, iSuppli had said PC shipments would grow by 0.7 percent.

The decline in PC shipments is the first since the dotcom bubble burst in 2001, although that one was worse -- shipments fell by over 5 percent.

"An annual decline in unit shipments is highly unusual in the PC market," said principal analyst Matthew Wilkins in a statement. "Even in weak years, PC unit shipments typically rise by single-digit percentages."

iSuppli attributes this year's projected decline to a combination of cutbacks in corporate spending and the falling popularity of desktop computers, whose shipments are expected to plunge this year by more than 18 percent compared to 2008. Sales of servers, meanwhile, are expected to drop by about half that.

One bright spot is notebook PCs, which Wilkins expects to grow by 11.7 percent, outselling desktops for the first time ever. But even notebooks can't offset the overall decline in PC shipments, Wilkins said.

Intel on Tuesday reported its first quarterly loss in over 20 years, which it attributed to a $1.45 billion fine imposed this spring by the European Union. The EU accused Intel of interfering with sales of rival AMD's chips and limiting consumers' choices in the market. Intel plans to appeal the fine.

Still, Intel's shares rose 8 percent Tuesday because of stronger consumer sales in Asia and Intel's resumption of quarterly forecasts, which may mean that orders are now more stable.

For the third quarter, Intel expects slightly improved revenue and gross margins, beating analysts' expectations.

iSuppli also expects PC shipments to improve later this year. Fourth quarter shipments will rise by 3.6 percent compared to last year, Wilkins said, and shipments will rise by 4.7 percent in 2010.

Chart courtesy of iSuppli.

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