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To: Mark Peterson CPA who wrote (120062)	4/22/1999 2:17:00 PM
From: Mohan Marette	Read Replies (4) \| Respond to of 176387

Worldwide PC market will grow to $253.7 billion by 2002-158.2 mil units. Mark: This for all those who thinks PC biz dead and buried for good. =========================== Dropping prices and shrinking footprints keep desktops enticing, study says. by Michael Drexler, IDG News Service April 21, 1999, 1:56 p.m. PT Desktop systems will still be the largest share of PC shipments worldwide through at least 2002, contrary to some market expectations, say Gartner Group analysts. Desktop PCs were 83 percent of the PCs sold in 1998 and will capture 84 percent of the worldwide market by 2002, analysts say. Notebook sales dropped from 17 percent to 16 percent in the same period, they say. "Consumers don't care about mobility, they care about flexibility," says Scott Miller, principal analyst at Gartner Group. "We see that desktops will continue to dominate the industry." Notebook sales are higher in Japan than in the U.S. But Gartner expects desktop PCs sales will be about 60 percent of the PC market within a few years, up from about 55 percent today, says Katsushi Shiga, principal analyst at Gartner Group's Japan unit, where the report was released. "Notebooks are being used in this market as space savers," Shiga says. "People don't move them around, they buy them because notebooks are smaller (than desktops). As more and more desktops with smaller footprints are available, Japanese will buy fewer notebooks." Buyers around the world spent $158.7 billion on 92.2 million PCs last year, Gartner Group estimates. Analysts expect the worldwide PC market will grow to $253.7 billion by 2002, when they expect manufacturers will ship 158.2 million machines. Most of those customers are in the U.S. and Europe, which accounted for 63 percent of world's PC production last year, Gartner analysts say. Price and performance are the major factors keeping demand for desktops buoyant, according to Miller. As desktop prices drop further below $1000, mobile machines will become less attractive, he says. The average price of a notebook computer is 2.5 times higher than a desktop with equivalent performance. "Mobile computers are toys for well-heeled economies," Miller says. Gartner Group expects the PC sales in the Asia-Pacific market to account for 13 percent of the world's PC shipments in 2002, up from 11 percent in 1998.