To: Stoctrash who wrote (30868 ) 3/13/1998 3:17:00 PM From: Don Dorsey Read Replies (1) | Respond to of 50808
90.6 million PC's by the end of this year. Not only is DVD rapidly becoming standard equipment, the PC market is still growing rapidly. March 12, 1998 Vol. 6 - No. 48 Media Daily Archive DIRECT Newsline Letters to the Editor PC Market Grew 15.4% Last Year; Expect 13.4% Next The personal computer market will grow 13.4% and reach unit volume of 90.6 million worldwide this year, according to forecasts by Framington, MA-based research firm IDC. Although down from 15.2% growth (79.9 million total units) during 1997, solid demand for PCs in regions such as the U.S., Western Europe and Latin America are expected to mitigate any further decline that may result in major market weakness in many Asian markets. But even the U.S. market, with an anticipated growth rate of 15.4% this year and 36.3 million vendor shipments, should prepare for modest declines from last year's 19% boost, IDC predicted. Among the factors contributing to this year's potential growth are a strong economy coupled with the burgeoning low-cost PC market. Much of the dwindling Pacific market will is expected to be shored up by a robust European market, which should sport 13.8% growth and volume of 22.1 million. Coming off a bullet train of growth -- 16.5% growth in 1997 -- Asia/Pacific shipments in 1998 are likely to move at a sluggish 6.9%, said IDC, as volume reaches slightly more than 11 million units. This major growth decline is based on a very weak outlook for Korea and many Asian countries offsetting continued strength in China, India, and Taiwan. Japan is expected to improve following a market downturn in 1997. Vendor shipments in Japan are expected to increase 7.3% to 8.5 million driven by an expected renewed consumer interest in the second half of this year. The so-called Rest-of-World (ROW) geographies, comprised of Canada, Latin America, East Central/Eastern Europe (EECE) and the Mediterranean, and the Middle East/Africa (MMEA) area, are projected to reach more than 12.5 million units on growth of 18%. Latin America is expected to lead the ROW growth. In terms of worldwide PC shipments, the top five vendors named by IDC were Compaq, (10.4% market share, up 41% from last year); IBM (9% share, up 17%); Dell (4.3% share, up 57%); Hewlett-Packard (5.6%, up 50%); Packard Bell NEC (5.2%, up 6.1%); and all other manufacturers (31.1% share, up 10%). IDC said the shift toward lower prices and more efficient business models favors the largest vendors, which have broader product lines and geographical scope. This group of vendors continues to gain share on the total market and increasingly looks to take share from each other, particularly in the more lucrative commercial market, the company added.