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To: Dan Spillane who wrote (52092)11/8/2000 8:27:52 AM
From: DJBEINO  Respond to of 53903
 
Gartner Dataquest Says Asia/Pacific PC Shipments Increased 34 Percent in Third Quarter 2000

SINGAPORE--(BUSINESS WIRE)--Nov. 8, 2000--The Asia/Pacific personal computer market experienced strong growth in the third quarter of 2000 as unit shipments totaled 4.6 million units, an increase of 34 percent over the same period last year, according to preliminary results from Dataquest Inc., a unit of Gartner Group Inc. (NYSE: IT - news and ITB - news). PC shipments reached 3.4 million units in the third quarter of 1999.

``The Asia/Pacific PC market thrived on the back of government and private initiatives to increase the utilization of IT and the Internet in their respective countries,'' said Erica Gadjuli, analyst for Gartner Dataquest's Personal Computer Asia/Pacific program.

Legend continued to hold the first position in the Asia/Pacific region with an 11 percent market share (see Table 1). IBM was second with an 8 percent market share, followed by Samsung with 7 percent of the market. All three vendors were aided by robust growth rates in China and Korea.

Table 1
Asia/Pacific PC Vendor Unit Shipment Estimates for 3Q00 (Units)

3Q00 Market 3Q99 Market Shipment Growth
Company Share(Percent) Share(Percent) (Percent)

Legend 11.1 7.9 87.5
IBM (with IBM/LG) 8.6 8.3 39.4
Samsung Electronic 7.4 4.8 104.7
Compaq 7.1 7.8 22.1
Acer 5.3 4.8 48.8
Others 60.5 66.4 22.8
Total Market 100.0 100.0 34.0

Note: Table includes desk-based PCs and mobile PCs. Source: Gartner Dataquest (November 2000)

China continued to lead the PC market in the region with a market share of 39 percent in the third quarter of 2000. ``The PC market in China grew 14 percent in the third quarter of 2000 as a result of stable economic growth experienced in the country, which has continued to attract foreign investment and boost exports,'' Gadjuli said. ``This has also contributed to the development of the industrial and service sectors of the economy. At the same time, the rapid growth of the Internet industry and the substantial expansion of the Internet community have also supported the growth of the PC market in China.''

Korea was the No. 2 country in the region as it accounted for 18 percent of PC shipments. PC shipments in the country increased 125 percent over the third quarter of last year. ``The market witnessed a burgeoning number of PC rooms -- the Korean equivalent of Internet cafes,'' Gadjuli said. ``The government's vision of equipping every Korean household with a PC with Internet access led to Samsung and TriGem putting out PCs at very low prices in order to compete with medium-size makers of Internet PCs.''

The Australian market displayed a moderate year-on-year growth rate of 11 percent in the third quarter. This was attributed to the negative implications of the Goods and Service Tax (GST), an unfavorable exchange rate against the Australian dollar, and the Olympics, all of which played a role in adversely affecting the PC market. The home and SOHO (Small Office Home Office) market segments continue to exhibit healthy signs of growth and may be the key driving force in sustaining the Australian PC market

``PC shipments to other countries in the Asia/Pacific region also experienced strong growth in the third quarter of 2000, particularly in countries with low PC penetration rates like India, Malaysia, Thailand and Indonesia,'' Gadjuli said. ``The demand for PCs in more developed countries like Taiwan, Hong Kong, Singapore and New Zealand continue to be boosted by strong replacement rates, while the PC markets in the Philippines and Vietnam are still in the nascent stage with lots of room to grow. These represent enormous potential and opportunities for vendors should the region continue on the path of stable economic growth in the coming quarters.''

Gartner Dataquest's Personal Computer Quarterly Statistics Asia/Pacific program surveys the leading worldwide and local PC makers in Asia/Pacific. This program offers the most detailed and timely information on the Asia/Pacific PC market. Additional information on this program is available on the Gartner Dataquest Web site at www.gartner.com/public/static/home/ourservices/scopes/a02pcqsap.html.

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