SAN FRANCISCO -- Weak demand in Europe and the US has 2011 off to a slow start for PCs, a leading analyst said today.

Deutsche Bank lowered its 2011 PC forecast to 4% from 9% due to slow consumer sales. DB expects manufacturing to improve sequentially in the second quarter, but not enough to compensate for the first-quarter dip.

The firm cited pressure from the iPad and smartphones as a drag on consumer PC demand.

"iPad cannibalization is tracking above our original 30% estimate. Apple remains the primary beneficiary of this transition, which is increasingly coming at the expense of Acer and HP," DB said. The trend led DB to hike its 2011 tablet forecast 13% to 45 million units.

Meanwhile, corporate demand shows no signs of a slowdown, said Whitmore.

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