Gartner today said the computer industry is recovering much faster than expected. Based on processor sales, the analyst group estimates PCs have turned from double-digit year-over-year declines at the start of the year to slight increases by the end. It still expects processors, flash memory and other chip technology to face an 11.4 percent decline for all of 2009 but also anticipates levels jumping back to an all-time high seen in 2008.

Cellphones have also been a help by driving demand for flash and for chips as a whole.

The researchers warn that 2010 still carries a risk. Checks in the supply chain suggest computer builders are slowing down their shipments earlier than they normally would during the holiday period. The halt suggests many of the companies expect a weaker than usual start to 2010 where many decide against buying new PCs early into the year.

Recent rumors indirectly support the checks, as they assert that some companies have ordered too many Windows 7 PCs and may need to slow down production to clear out excess stock. The glut is thought to have stemmed from overly optimistic expectations about the OS' impact on sales rather than worries of a renewed industry slump.