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Politics : Formerly About Applied Materials
AMAT 228.68-2.7%Nov 11 3:59 PM EST

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To: Proud_Infidel who wrote (50152)8/3/2001 9:14:13 AM
From: Proud_Infidel  Read Replies (1) of 70976
 
PC volumes drop in Europe for first time in Q2, says Dataquest
Semiconductor Business News
(08/03/01 08:57 a.m. EST)

EGHAM, England -- Reflecting weakness in worldwide PC markets, shipments of personal computers in Western Europe dropped for the first time on record during the second quarter this year, said Dataquest Inc. today. The research firm estimated that 6.02 million PCs were shipped in the region during Q2, a 4% decline from a year ago.

Unlike other regions--in particular the U.S market--corporate demand for computers isn't the problem in Europe--it's consumer confidence.

"The collapse of the home PC market in Western Europe masks a cautious, but more optimistic outlook from business customers," said Brian Gammage, analyst with Dataquest's Computing Platform group in Egham. "Large account customers have continued to return to the market and this segment is showing steady growth, but the overall picture is distorted by a general weakness of computer hardware in retail.The worsening economic outlook is clearly hitting consumer confidence."

PC shipments to the wider region of Europe, Middle East and Africa totaled 8.38 million units during the second quarter of 2001, a 0.1% increase over the same period last year, said Dataquest.

According to the research firm, PC shipments in the professional segment grew 5.7%, with double-digit growth in large accounts in the region. The professional segment accounted for 77% of the PC market in broader Europe-Mideast-Africa region during the second quarter, with shipments of 6.5 million units. PC shipments to the home segment in the same quarter totaled 1.9 million units, said Dataquest.

Shipments of notebook PCs in the region continued to show growth rates faster than shipments of deskbound PCs, but the mobile segment growth rate of 10.4% was significantly down on the rates seen in previous quarters, noted Dataquest.

"Despite the modest growth in the professional market, there is plenty here to worry PC vendors as the second quarter of 2000 was weak, so our growth comparisons are against a weak base," Gammage said. "Many of the leading international vendors have seen shipments decline, some by a significant degree, and only those who are executing against a clear strategy are seeing shipment levels increase. However, in a market where prices, margins and volumes are all declining, it is far from certain that the winners are those who are gaining market share."
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