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Technology Stocks : Compaq

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To: rupert1 who wrote (39170)12/8/1998 9:21:00 AM
From: rupert1  Read Replies (1) of 97611
 

IDC:Asia/Pacific 3Q PC Shipments Decline Vs. One Year Ago
by: hlpinout

Framingham, Mass.-Dec. 7-FWN--THIRD-QUARTER PERSONAL computer (PC) shipments in the Asia/Pacific region declined from the same period a year ago, but the market performed better than forecast, according to preliminary data released today by International Data Corporation (IDC).

Asia/Pacific (excluding Japan) PC shipments declined 2.3% in the third quarter compared to the same quarter a year ago, which represented the lowest annual decline in 1998. Likewise, the
regional PC market managed to exceed IDC's initial forecast of a 3.1% decline as shipments reached 2.56 million units.

The stronger-than-expected results combined with strengthening currency and stock markets in the fourth quarter bodes well for the regional PC market in the fourth quarter and into 1999. Further,
Intel's announcement in November that it expects fourth-quarter demand for PC products "across all market segments and in all geographies" to be stronger than initially expected adds credence to
the prospect of a regional PC market revival.

Based on IDC's latest forecast, PC shipments in the fourth quarter are expected to increase 5% over the fourth quarter of 1997, which marks the first annual shipment growth since the fourth
quarter of 1997. Regional PC shipments in 1999 are forecast to increase 16% over 1998, a considerable improvement from an expected 1% annual decline in 1998.

"After one year of turmoil, the regional PC market is showing some signs of life as we look toward 1999," said Brian Kornegay, research manager at IDC Asia/Pacific. "While we are not ready to proclaim a full-fledged recovery, the worst could be behind the regional PC market as a degree of stability returns to the region."

Competitively, Compaq maintained leadership in the regional market with 8.6% market share.

Compaq volumes dropped from the same period a year ago as well as in the second quarter of 1998 as some Digital business faded. IBM remained the second-ranked vendor in the third quarter
after being bumped there in the second quarter of 1998. Nevertheless, IBM managed to increase market share from the year-earlier period by outpacing industry growth.

One of the quarter's most significant competitive shifts was generated by Legend. Due to 75% annual shipment growth, Legend replaced Hewlett-Packard as the third-largest vendor in the
region with 5.8% market share. Legend's strong gains continue to be fueled by its strength in the Chinese market where PC growth has remained stable. Despite 25% annual shipment growth,
Hewlett-Packard dropped to the market's fourth-place position. Hewlett-Packard's strong annual growth was bolstered by exceptional gains in the PRC, Australia and New Zealand. Acer marginally maintained its fifth-place position despite a 24% contraction from the third quarter of 1997.

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