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To: DJBEINO who wrote (3933)	9/9/1998 11:39:00 PM
From: DJBEINO	Read Replies (1) \| Respond to of 9582

PC Sales Seen Showing 11% Growth In 3rd-Quarter As Asia Hurts Growth NEW YORK -(Dow Jones)- Personal computer sales in the third quarter are expected to rise a modest 11% from the year-ago period, as economic turmoil in the Asia/Pacific region continues to constrain the industry, according to a study. Still, the forecast from International Data Corp. is somewhat brighter than the figures from the second quarter, when world-wide shipments rose just 8% from a year earlier. IDC, a market research group in Framingham, Mass., estimates that shipments will increase 12.2% in the second half of the year, typically the sector's strongest period. For the first six months, global growth was 9.6%. In contrast, world-wide PC shipments rose 16% in 1997 and 17.6% in 1996. But much of that growth was fueled by Japan and Asia/Pacific, where sales have faltered. The firm is projecting third-quarter sales will fall 3% in Asia/Pacific and nudge up 2% from a year ago in Japan. IDC, like many high-tech firms, separates results in Japan from the rest of the Asia/Pacific region. Western Europe is expected to be the bright spot with 16% growth, while U.S. sales are seen rising 14% from the third quarter a year ago. The study noted that most of the inventory problems that had plagued PC makers like Compaq Computer Corp. (CPQ) "have been largely erased." Further, IDC expects improved demand industrywide for low-cost PCs and laptop computers in the second half of the year. But the research group said it is "still concerned about the spread of global economic problems and the attendant problems on PC demand." In addition to Asia/Pacific, IDC cited economic woes in Russia as impacting world-wide sales. IDC estimated that the strongest growth in the third quarter will belong to Apple Computer Inc. (AAPL) because of "hot" sales of the new iMac, introduced in August. It also said Dell Computer Corp. (DELL) is "enjoying impressive growth across the spectrum of product and consumer segments as well as many geographies." Compaq should turn in improved growth, IDC projected, noting strength in its consumer business. The firm also projected third-quarter market share gains for Hewlett-Packard Co. (HWP), Gateway Inc. (GTW) and Toshiba Corp.