Personal computer sales increase in Europe (28 October 98)
From Austin American-Statesman, Wednesday, October 28, page C2
By Bundeep S. Rangar, Bloomberg News
LONDON-Personal computer sales in Europe rose about 22 percent in the third quarter, outpacing U.S. growth as increased corporate spending on information technology sparked demand, two market research companies said.
International Data Group's IDC research unit said sales rose 21.9 percent to 4.9 million units, while London-based context pegged growth at 22.4 percent to 5.25 million units. By contrast, U.S. PC sales grew between 14 percent and 18 percent, according to IDC and Dataquest Inc. Direct PC seller Dell Computer Corp., based in round Rock, grew the fastest, increasing its market share about 3 percent.
Europeans from chief executives to homemakers are beginning to appreciate how computers can help them place orders, find data or entertain children. A Europe-wide economic recovery, coupled with corporate spending on hardware ahead of the planned European common currency also boosted sales.
"The western Europe market is growing faster than the U.S. and Asia," said Terry Ernest-Jones, research manager for personal systems at IDC, "It's still thriving, though we expect it to level out at about 12 percent next year."
Dell grew more than 90 percent for a market share in Europe estimated between 8.5 percent and 9.1 percent in the three months through September. Compaq, which sold more than twice as many PCs as Dell, maintained its lead with a 19 percent market share. Its sale grew about 38 percent.
After a slump in European PC sales in 1996 and early 1997, demand recovered for a fifth consecutive quarter as Germany, France, Italy and other nations that cut spending to qualify for the European monetary union's loosened fiscal restraints.
The Swedish market, with a 69 percent growth rate, grew fastest as employee-purchase programs enabled companies to sell PCs to their employees at low prices. Among the three largest markets, France led with 21.5 percent, followed by Germany at 18.9 percent and the United Kingdom with 18 percent, according to Context.
Apple computer Inc. which introduced its iMac model late in the quarter, increased sales 29 percent, shipping 141,793 units for a 2.7 percent market share, Context said.
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