European Computer Sales Rose 11.3% in 4th Qtr, Led by Compaq 2/8/00 10:00:00 PM Source: Bloomberg News
London, Feb. 9 (Bloomberg) -- European personal computer sales rose 11.3 percent to 9.8 million units in the fourth quarter of 1999, with Compaq Computer Corp. maintaining its No. 1 position, according to GartnerGroup Inc.'s Dataquest.
International Business Machines Corp. dropped to fourth position from second, pushed out by the Fujitsu Siemens Computers joint venture. Dell Computer Corp. slipped one notch to No. 3.
Overall in 1999, PC shipments rose 19 percent to 27.6 million units, slower growth than in 1998 as companies fixed or upgraded their computers rather than buy new ones. That slowdown was more than offset by consumers buying home PCs in a rush to get on the Internet. This year, Western Europe will see 18 percent growth, led again by home PCs, and growth will average 16 percent though 2003, according to Dataquest.
'' The strength of the home market is really surprising,'' said Howard Seabrook, service director at Dataquest. ''Everybody wants to be on the Internet. Countries slow to adopt PCs like Spain, Portugal and Italy are growing and it seems unstoppable.''
Fourth-quarter sales of home PCs rose 20 percent to 3.32 million, led by Packard Bell NEC Inc., while corporate sales rose just 6 percent. In 2000, Dataquest predicts 22 percent growth in home PC sales and 16 percent growth in professional sales as companies start to replace older models.
Compaq Slips
While it held on to the top spot overall, Compaq's market share slipped to 15.1 percent from 17 percent a year earlier. It was the first quarter of operations for the Fujitsu Siemens venture, which had more market share than its combined sales in the same quarter of 1998.
''Overall it's a credible performance to stay at the top -- what must be worrying is that (Compaq's) margin over the others is being eroded,'' said Seabrook. ''With Fujitsu-Siemens, somehow they've pulled it off and actually grown the business on the back of consumer sales.''
Sales of laptop computers rose 22% to 1.4 million units, led by Compaq, Toshiba Corp. and IBM. Apple Computer Inc. began shipping its iBook notebook, a companion to the iMac model, in the fourth quarter. The combination helped Apple jump to seventh from 10th place overall in the PC market.
Eastern European sales rose 13 percent, posting higher growth than Western Europe for the second straight quarter. Western European sales rose 11.1 percent.
For 2000, one question mark is Microsoft Corp.'s new Windows 2000 operating system, Seabrook said. While it may spur buying of more powerful PCs, it could also prompt companies to switch to powerful servers to run the software and simpler, cheaper terminals for users.
In either case, the sale of home PCs should continue to be strong and the vendors will attack the market to replace older models at businesses, said Seabrook.
''The PC market is conditioned to growth,'' Seabrook said. There's not going to be any slowdown from the vendors. The question is, how are they going to grow and are they going to do it profitably. '' |