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To: dragonpawn who wrote (83067)	6/8/1999 2:36:00 PM
From: Mary Cluney	Read Replies (1) \| Respond to of 186894

PC Shipments Forecast to Rise 21.3% in Second Quarter on Worldwide Demand quote.bloomberg.com Framingham, Massachusetts, June 8 (Bloomberg) -- Global shipments of personal computers are expected to rise 21.3 percent in the second quarter from a year earlier, boosted by demand in Japan and price cutting in the U.S., a market researcher said. International Data Corp. raised its forecast from 16.5 percent growth as sales of low-priced machines carried over from the first quarter. Revenue isn't expected to rise as much because of the cheaper prices. Total sales will rise 11 percent to $42.7 billion from $38.4 billion in the year-earlier period, IDC said. Much of the growth is coming from PCs costing about $500 made by upstart emachines Inc. and its rivals. That's hurt Dell Computer Corp. and Compaq Computer Corp., whose shares have fallen amid concern aggressive price cutting will reduce profits. Dell, for instance, has slid 23 percent in the last three months. ''We anticipate a healthy year for 1999,'' said analyst John Brown at the Framingham, Massachusetts-based research firm. Still, ''it's going to get harder and harder to boost revenue.'' For the full year, IDC expects worldwide shipments of PCs to rise 19 percent to 107.5 million units from 90.3 million in 1998. Revenue from those shipments will climb just 8.7 percent to $184.9 billion from $170.1 billion in 1998, IDC said. Dell fell 1 1/16 to 34 11/16 in late morning trading. Compaq slid 7/8 to 23. Better Than 1998 By any measure, IDC expects 1999 to be better than 1998, when shipments rose 12 percent and revenue increased just 2 percent. Sales were weak last year because much of Asia was still in recession after a financial crisis that sent the region's currencies tumbling and snuffed out economic growth. Now, Asia is rebounding, according to IDC. Consumers in Japan are buying more PCs to get on the Internet, making that market one of the region's best. PC shipments in Japan likely will rise 36 percent in the second quarter, IDC said. PC shipments in the rest of the Asia-Pacific region are expected to rise 22.6 percent, the research firm said. Growth in the U.S. will be strong as well, with shipments rising 28 percent to 10.3 million units in the second quarter. IDC expects shipments in Western Europe to rise 13.7 percent from the year-earlier period, bolstered by greater use of the Internet. Falling prices also will spur sales, IDC said. In addition to putting out its latest forecast, IDC disclosed final figures for first-quarter shipments. The research firm said total shipments rose 21 percent in the first quarter, up from a previous estimate of 19 percent growth.