Global PC demand to grow at 15% in Q2: IDC

NEW YORK: Worldwide demand for personal computers is expected to jump 15.2 per cent during the second quarter of 2000 to 30.3 million units, according to data released on Tuesday by market research firm International Data Corp (IDC).

Overall the growing demand in Asian markets as well as a continued pattern of high consumer demand will fuel unit volume, IDC predicts. Japan will continue as a "hot" market with year-over-year growth of nearly 41 per cent, fuelled by consumers, new low-cost desktop models, and business PC upgrades in part stimulated by the extension of a tax legislation. Outside Japan, the Asia-Pacific region will also retain its high-growth position during the second quarter expanding about 25 per cent. Consumer demand in that region is also expected to grow with shipment levels at close to 50 per cent over the second quarter of 1999. Key market drivers include lower price points driving more households to purchase PCs, as well as government-sponsored programmes in countries like Korea that promote PC purchases. The top five PC vendors who will benefit from strong demand in Asia and in consumer markets are Acer, Hewlett-Packard, Dell and Gateway, according to IDC.

IDC, however, does predict a slight decline in global PC volume from the first quarter due to a mixed growth story in the US. "While the U.S. consumer market remains strong, we see a tighter supply of desktop PCs due to current CPU shortages," said worldwide personal systems research group vice president Bruce Stephen.

IDC also said demand for desktop PCs by corporations is not likely to rebound much during the second quarter, contributing to an expected single-digit year-over-year growth rate. However, demand in corporate accounts should improve in the second half of 2000 as the Windows 2000 upgrade cycle moves into high gear. During the first quarter of 2000, the top three PC vendors in the US based on number of shipments were Dell with almost 2 million shipments and a 17 per cent market share, Compaq with 1.9 million units and a 16 per cent market share, Hewlett-Packard with 1.4 million shipments and a 12 per cent market share and Gateway with 1 million units and a 9 per cent market share.

The top four vendors worldwide were Compaq with 4 million units and a 13 per cent market share, Dell with 3.2 million shipments and a 10 per cent market share, Hewlett-Packard with 2.5 million units and an 8 per cent market share, and IBM with 2 million shipments and a 6 per cent market share.

(C) Reuters Limited 2000.