U.S., Europe, Strongest Markets for PC Growth in 1Q99, Study Says : Continued price pressure to slow dollar growth

Electronic News, March 15, 1999

Framingham, Mass- Continuing price pressure will slow personal computer dollar growth to less than 5 percent for the year, despite healthy worldwide demand for PCs during this quarter, according to new figures released last week by International Data Corp.

PC shipments for the first quarter are expected to grow by 14.1 percent, year over year, as volume will fall by 14.7 percent from the fourth quarter of 1998, following a well-tread annual pattern.

IDC also predicts that OEMs will ship 103.2 million PCs worldwide this year, an increase of 14.3 percent over 1998. The U.S. will lead the pack with a 19.3 percent year-over-year growth rate in PC shipments in the first quarter. Western Europe will post a 15.1 percent growth rate in shipments for the quarter, IDC said.

The Asian-Pacific region, excluding Japan also appears to be off to a good start for the year, despite recent economic turmoil. IDC expects 14 percent growth in shipments with only a 6.7 percent decline from the fourth quarter of 1998 to the first quarter of 1999. Falling prices, coupled with low penetration is driving consumer interest in buying PCs, particularly in China and India, IDC said.

IDC described Japan as going through a "soft rebound," and will report a growth in shipments of 6.2 percent in shipments from the fourth quarter of 1998.

Compaq led PC vendors in both U.S. and global shipments of PCs in the fourth quarter, followed by Dell, Gateway, IBM and Hewlett-Packard in the US market. IBM ranked second in the global market, followed by Dell, Hewlett-Packard, and Packard Bell NEC.