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Technology Stocks : Compaq

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To: Mohan Marette who wrote (10645)12/9/1997 9:04:00 PM
From: Maverick  Read Replies (2) of 97611
 
PC Growth To Slow In '98
(12/09/97; 5:00 p.m. EST)
By J. Robert Lineback, Semiconductor Business News

The rate of unit growth in PC markets will slow worldwide to 13.5
percent in 1998 compared with 14.2 percent this year, partly
because of weaker demand for PCs in Asia, said a new forecast
released Tuesday by International Data Corp.

IDC's forecast shows 79.1 million PCs being shipped this year,
said John Brown, manager of IDC's Worldwide Quarterly PC
Tracker, based in Mountain View, Calif. Previously, IDC
expected 80.1 million units to be shipped worldwide, or a growth
rate of 15.7 percent. In 1996, the unit shipment growth was 17.6
percent over 1995.

"While the percentage of increase continues to drop, the PC
markets are still showing signs of healthy growth," Brown said.
"Part of the lower growth rate is simply a result of the market
becoming larger."

The U.S. market continues to be the strongest growth market,
fueled by the emergence of sub-$1,000 PCs. In 1998, PC unit
shipments will grow by 17 percent, according to IDC.

In contrast, the Japanese and Asian PC market outlook is not as
good. IDC said it expects PC growth to slow considerably in 1998
throughout the Asia market. It has lowered its unit shipment
forecast from 12.93 million to 12.36 million next year. In Japan --
which will see a 6 percent drop in unit shipments in the fourth
quarter compare to a year ago -- 5 percent growth is expected in
1998. For 1997, PC shipments will be flat in Japan, IDC said.

PC shipments in Western Europe will grow by 8 percent in 1998,
according to the IDC forecast.
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