Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: Elwood P. Dowd who wrote (32540)	9/9/1998 9:00:00 AM
From: Roy F	Read Replies (3) \| Respond to of 97611

Global PC market still dampened by Asia - IDC September 9, 1998 08:11 AM FRAMINGHAM, Mass., Sept 9 (Reuters) - Unit volume in the worldwide personal computer market this quarter is expected to grow year-on-year 11 percent, according to a figures released Wednesday by International Data Corp. This reflects a "warming" of a global market which remains dampened by economic problems in the Asia/Pacific region and Russia. IDC estimated that vendor shipments will grow 12.2 percent in the second half of 1998, with total year growth at 11 percent. Global volume increased 9.6 percent during the first half of the year. "The inventory problems that plagued the first half of the year have been largely erased and we expect the market to perform better in the next six months, with improved demand for low-cost and portable PCs," said Bruce Stephen, IDC group vice president of worldwide PC research. "However, while some market signals are better, IDC is still concerned about the spread of global economic problems and the attendant problems on PC demand." IDC said Western Europe continues to be a market bright spot with unit growth of 16 percent expected this quarter, driven by heightened interest in the Internet, low-cost PCs as well as greater focus on the region by major global brands, U.S. growth this quarter is pegged at 14 percent based on the continued strength of the low-cost PC market, healthy consumer demand and a more vibrant portable computer segment. As in the first two quarters of 1998, Asia/Pacific (excluding Japan) is forecast to post a 3 percent decline this quarter. The region's economic woes have stifled PC demand in many areas, and the region is expected to show a decline of nearly 2 percent for the entire year. IDC said it expects the gloomy growth picture in Japan to improve a bit this quarter with unit volume up about 2 percent over the prior year, after second quarter unit shipments dropped 14 percent. For the total year, unit volume in Japan is expected to decline four percent. IDC believes the greatest growth rates in third quarter unit shipments will fall to Apple Computer Inc., AAPL , which is posting a strong product lineup headed up by the hot-selling iMac. Dell Computer Corp. DELL is also enjoying impressive growth across the spectrum of product and customer segments as well as many geographies. Dell's chief rival, Compaq Computer Corp. CPQ , should also turn in a much better quarter as the company returns to higher factory shipment growth, especially in commercial desktops, IDC said. The company said Compaq's consumer business also looks very strong. Share gains will likely be enjoyed by Hewlett-Packard Co. HWP , Gateway Inc. GTW , and Toshiba Corp. , based on strong U.S. portable shipments, IDC said. ((--New York Newsdesk (212) 859-1700)) REUTERS