To: John Solder who wrote (49739 ) 3/11/1998 3:37:00 PM From: Bipin Prasad Respond to of 58324
Research Reports PC Growth Will Likely Ease In 1998 (03/11/98; 2:59 p.m. EST) By Staff, Semiconductor Business News Against the backdrop of the Asian financial crisis and tumultuous market conditions, worldwide PC shipments will grow 13.4 percent in 1998 to about 90.6 million units, according to a new forecast released Wednesday by International Data Corp. (IDC). However, the market researcher said 1998 will be a major year of transition for all PC vendors. According to Framingham, Mass.-based IDC, demand continues strong for PCs in the United States, Western Europe, and Latin America, offsetting major weakness in many Asian countries. The 13.4 percent growth over 1997 unit shipments represents a slowing of unit growth compared with last year, when PC shipments grew 15.2 percent to 79.9 million, IDC said. "The range and depth of current market changes point to a profound shift in industry business models, concentration of power, distribution strategies, and product mix," said Bruce Stephen, group vice president of IDC's worldwide personal systems research. The U.S. market is still expected to show solid growth in 1998 with vendor shipments increasing 15.4 percent to 36.3 million units. In 1997, the U.S. growth rate was 19 percent. IDC said the U.S. PC market will be driven by the strong economy and expansion of the low-cost PC market into more product categories. Meanwhile, Western Europe's PC market is expected to grow by 13.8 percent with unit volume reaching 22.1 million this year. With that growth rate, Western Europe becomes a more pivotal growth area and it will offset the expected decline in the Asia-Pacific region, according to IDC. IDC is forecasting sluggish growth in the Asia-Pacific region, which will increase at 6.9 percent with PC volumes reaching slightly more than 11 million units. In 1997, PC unit shipments grew 16.5 percent in the region, IDC said. In Japan, PC vendor shipment are expected to grow 7.3 percent to 8.5 million units. IDC said it predicted a renewal of consumer interest in low-cost PCs will help the market recover in the second half of the year.