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To: JPR who wrote (56891)	8/7/1998 7:53:00 AM
From: Mohan Marette	Respond to of 176387

JPR:Thanks for that report,nice to start the day with some good news.<eom>

To: JPR who wrote (56891)	8/7/1998 8:23:00 AM
From: Mohan Marette	Read Replies (3) \| Respond to of 176387

News from Dataquest. JPR: GartnerGroup's Dataquest Says the Battle for the No. 1 Position in U.S. PC Market Heats Up in Second Quarter San Jose, Calif., July 27, 1998-Despite economic difficulties in Asia/Pacific and Japan, the worldwide personal computer industry continued to post steady growth as shipments surpassed 21.1 million units in the second quarter of 1998, up 13.9 percent over the same period last year, according to preliminary statistics from Dataquest, a unit of Gartner Group, Inc. (NASDAQ: GART). The U.S. market sustained double-digit growth, increasing 12 percent, as market leader Compaq/Digital and Dell were in a virtual tie with 14.4 percent market share and 14.2 percent market share, respectively. "All companies were hurt to some extent by poor performance in Asia/Pacific and Japan, and true customer demand in other regions was masked by inventory reductions," said Scott Miller, senior industry analyst for Dataquest's Personal Computer Systems and Peripherals program. With the merger of Compaq and Digital, the company's shipments increased 12 percent over the second quarter of 1997, but its market share declined slightly (see Table 1). Compaq shipments (taking out Digital's share) grew 14 percent, with shipments reaching 2.4 million units in the second quarter, which accounted for 11.3 percent of the market. The U.S. market's growth was led by Dell, Gateway, and Hewlett-Packard, with growth ranging from 73.7 percent to 33 percent (see Table 2). Compaq/Digital maintained the No. 1 position, although its lead was cut significantly. Compaq's shipments (taking out Digital's) in the U.S. market reached 1 million units, and its market share was 13.5 percent. "The divergent growth rates among the top vendors reinforce the importance of supply chain management," said Mr. Miller. gartner11.gartnerweb.com