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Technology Stocks : ATI Technologies in 1997 (T.ATY) -- Ignore unavailable to you. Want to Upgrade?

To: Ian@SI who wrote (4967)	1/21/2000 3:04:00 PM
From: Marc	Read Replies (1) \| Respond to of 5927

LONDON, Jan 21 (Reuters) - European PC sales rose 17 percent in 1999, although growth slowed to 11 percent in the fourth quarter as small-business buying tailed off in the run-up to the millennium date-change, researcher Context said on Friday. Compaq Computer Corp held on to its number one slot, but lost ground -- together with the world's largest computer maker International Business Machines Corp -- reflecting flat sales to corporate customers as the year advanced. Fujitsu-Siemens, the 50-50 joint venture between Japan's Fujitsu Ltd and Siemens AG of Germany, grew faster than direct-sales challenger Dell and, counting newly combined sales, stole Dell's number two slot. Apple Computer Inc. also came back strongly, becoming the quarter's fastest grower at over 52 percent. Other PC makers whose growth outpaced the market were NEC omputer Industries, formerly Packard Bell, Hewlett Packard , Acer Inc. and Toshiba . GROWTH SEEN AT 17-20 PCT THIS YEAR Marie-Christine Pygott, senior Context analyst, told Reuters in an interview the fourth-quarter slowdown should prove temporary, and IBM and Compaq should be helped by revived corporate spending as the race for a stake in electronic business gets under way. "I would expect that overall growth is going to be at least as strong as this year's total growth...probably between 17 and 20 percent," she said. Companies are indicating strong demand for the first half in particular. The growth was driven mainly by portable PCs and PC servers, which are increasingly in demand as Internet companies are set up, Context said. STRONG Q4 IN CONSUMER SEGMENT Dell's advance on Compaq has recently been a strong theme, the challenger stealing market share with its costs slashed by direct sales on the Internet. But it has a strong corporate base and had a slower fourth quarter than Fujitsu-Siemens. "Traditionally Dell is not very strong in the fourth quarter," Pygott said, referring to the consumer rush for PCs before Christmas. Fujitsu-Siemens has high exposure to the consumer segment and was also helped by special promotions in the Netherlands and Germany, its main market, she added. Besides seasonal factors, Pygott said Compaq has been struggling because of restructuring and changes in its sales model, to meet the Dell challenge. It managed just four percent growth in the fourth quarter.