IDC Forecasts Solid Worldwide 3Q 2000 PC Demand with 18.5% Unit Growth over 3Q 1999

FRAMINGHAM, MA – SEPTEMBER 7, 2000 – Unit volume in the worldwide PC market this quarter is expected to reach 33.4 million, which represents a 18.5% year-on-year increase and a 10.1% sequential jump from 3Q 2000, according to forecast data released today by IDC.

"The consumer market will once again propel global PC growth this quarter," said Bruce Stephen, IDC group vice president for Worldwide Personal Systems research. "Consumer demand for PCs is especially strong in Asian markets, and U.S. home PC volume is expected to improve based on back-to-school sales."

Asia/Pacific (excluding Japan) and Japan will continue their impressive run of market expansion with expected year-on-year growth of 36% and 35%, respectively. The heated growth in Asia/Pacific (excluding Japan) is based on thriving markets for consumer desktops and portables. Japan's strong performance is pinned to consumer PC consumption and an ongoing recovery in the commercial market.

In the United States, IDC has increased its forecast for 3Q 2000 to almost 13 million units, which represents a 13.4% sequential increase in volume and 10.6% growth on a year-on-year basis. The main market drivers in the U.S. are focused on a pick-up in consumer sales and a better commercial PC market, following a sluggish first half.

In Western Europe, IDC forecasts 7.5% sequential growth and a 14.5% year-on-year growth for the quarter. Consumer sales will remain healthy, fueled by Internet demand and attractive packages in the retail channel. Commercial sales are also expected to recover this quarter.

Vendor Results

An improvement in unit market share this quarter will likely occur among those vendors strongly positioned in the consumer, Asian, and portable PC markets. Ranking global vendors who can benefit from these growth factors include Compaq, Dell, Hewlett-Packard, and Gateway.

Table 1

Top 5 Vendors, U.S. PC Shipments, Second Quarter 2000

(Thousands of Units)

2Q 2000 2Q 2000 Market 2Q 1999 Market Growth

Rank Vendor Shipments Share Shipments Share 2000/99

1 Dell 2,293,284 20.07% 1,808,767 16.56% 26.8%

2 Compaq 1,693,002 14.82% 1,798,279 16.46% -5.9%

3 Hewlett-Packard 1,220,625 10.68% 840,736 7.70% 45.2%

4 Gateway 963,511 8.43% 845,449 7.74% 14.0%

5 IBM 713,137 6.24% 875,853 8.02% -18.6%

Others 4,542,323 39.75% 4,753,498 43.52% -4.4%

Total 11,425,882 100.00% 10,922,582 100.00% 4.6%

· Vendor shipments are branded shipments and exclude OEM sales for all vendors and represent shipments to distribution channels or direct to end users.

· Data for all vendors are reported for calendar periods.

Source: IDC, 2000

Table 2

Top 5 Vendors, Worldwide PC Shipments, Second Quarter 2000

(Thousands of Units)

2Q 2000 2Q 2000 Market 2Q 1999 Market Growth

Rank Vendor Shipments Share Shipments Share 2000/99

1 Compaq 4,012,987 13.23% 3,758,421 14.26% 6.8%

2 Dell 3,459,284 11.40% 2,825,279 10.72% 22.4%

3 Hewlett-Packard 2,259,192 7.45% 1,678,403 6.37% 34.6%

4 IBM 2,253,775 7.43% 2,347,332 8.91% -4.0%

5 Fujitsu Siemens 1,390,043 4.58% 1,252,206 4.75% 11.0%

Others 16,957,802 55.91% 14,488,434 54.98% 17.0%

Total 30,333,083 100.00% 26,350,092 100.00% 15.1%

· Vendor shipments are branded shipments and exclude OEM sales for all vendors and represent shipments to distribution channels or direct to end users.

· Data for all vendors are reported for calendar periods.

· Data for Fujitsu Siemens includes shipments for Fujitsu and Siemens.

Source: IDC, 2000

About IDC

IDC delivers dependable, high-impact insights and advice on the future of ebusiness, the Internet, and technology to help organizations make sound business decisions. IDC forecasts worldwide markets and trends and analyzes business strategies, technologies, and vendors, using a combination of rigorous primary research and in-depth competitive analysis. IDC provides global research with local content through more than 600 analysts in 43 countries worldwide. IDC's customers comprise the world's leading IT suppliers, IT organizations, ebusiness companies, and the financial community. Additional information can be found at http://www.idc.com.

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