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Technology Stocks : Compaq

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To: rudedog who wrote (33365)9/23/1998 8:31:00 PM
From: John Koligman   of 97611
 
IDC 1999 PC sales projections....


Dow Jones Newswires -- September 23, 1998
Researchers Sees Stronger PC
Shipment Growth In 1999

By MARK BOSLET
Dow Jones Newswires

SANTA CLARA, Calif., -- Worldwide personal-computer
shipments should strengthen modestly in 1999, climbing 13.2%
from 1998, market researchers International Data Corp., or IDC,
said.

Playing a significant role in the growth will be much improved sales
in Asia Pacific and Japan, where shipments have slumped amid
economic crisis this year, the market research firm said at a
conference here.

In addition, continued buyer interest in low-cost computers, a
rebound in the laptop market and residual strength in the U.S.
market should help drive the growth next year.

At its annual PC Market Outlook conference, IDC said it expects
PC shipments to come to 80.2 million this year, up 11% from
1997. That includes a 10.5% year-over-year increase in the third
quarter and a 13.6% increase in the fourth quarter, the research
firm said. Growth was a more subdued 10.1% in the second
quarter.

Shipments should come to 89 million next year, IDC said, however
because of the continued interest of sub-$1,000 computers,
revenue growth should be about half of the 13.2% unit growth.

After a dismal 1998 when shipments declined 1.6%, the Asia
Pacific region should see a 16.9% growth in shipments in 1999,
the research firm said. The market should turn the corner in the
fourth quarter of 1998 with shipments growing 4.9% year over
year, following three quarters of decline.

China and India will remain strong markets while some relative
stability is returning to others, the firm said. In addition, weak
year-ago sales comparisons in many countries will make showing
growth easier.

The Japanese market will have year-over-year shipment growth of
5.9% in 1999, IDC said. The research firm also expects improving
performance in Japan in the third and fourth quarters of 1998.

At its conference, IDC went on to say it expects to see low-cost PC
prices head even lower.

Over the next 12 months, top-tier PC makers could bring out
models selling for $499, said IDC analyst Kevin Hause. Unknown
brands could have $399 machines on the market in the next couple
months, he said.
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