IDC Results Show Significant Slowdown in Q4 Global PC Market

FRAMINGHAM, MASS – JANUARY 22, 2001 – The worldwide PC market grew only 9.2% year-on-year in 4Q 2000 on volume of 36.7 million units, according to preliminary data released today by IDC.

 

In 4Q 2000, the downturn in the global market was led by a weak consumer market, especially in the United States. The mature U.S. market grew just 0.3% year on year and declined 3.6% over the third quarter, as consumer sales were extremely weak and corporate desktop demand remained sluggish.

"Fears about the slowing U.S. economy clearly cut consumer demand in the latter half of the final quarter in 2000," said Roger Kay, manager of IDC’s PC program, "and a lack of compelling reasons to buy kept the commercial segment from making up the difference."

European markets also fell well short of expectations for the fourth quarter, although in Japan and Asia/Pacific, excluding Japan, markets were only a few points shy of expectations.

"More mature regions like the United States and Europe were significantly affected by consumer conservatism and a softening business segment, while Asia and other emerging regions were more robust," said Loren Loverde, director of IDC’s Worldwide Quarterly PC Tracker. "Economic worries, as well as slow migration to faster processors and Windows Me, may hold part of the blame, but saturation of the consumer market and a general lack of compelling reasons to buy may be more serious concerns for some regions."

Vendors

In the United States, Dell extended its number-one position, as Compaq — with its reliance on consumer sales — fell back. Hewlett-Packard gained market share and was the only major vendor to show strong consumer sales in 4Q 2000. Gateway had a particularly difficult quarter because of its heavy reliance on the U.S. consumer segment, which was one of the weakest anywhere. IBM rounded out the top 5 with shipments just above those of the previous quarter and year-on-year growth of 7.2% despite its shift in consumer strategy from retail to direct.

Worldwide, Compaq remained in front with 13% market share, despite having the lowest growth of the top 5 vendors. Dell significantly outgrew the market with 30.9% growth over 4Q 1999, gaining 2% in market share. Hewlett-Packard maintained its number-three spot with a strong 18.5% year-on-year growth. IBM grew just slower than the market with its share of shipments declining slightly to 7.3%. Fujitsu Siemens remained fifth with 5.1% market share.

Table 1

Top 5 Vendors, U.S. PC Shipments, Fourth Quarter 2000 (Preliminary)

(Thousands of Units)

4Q 2000 4Q 2000 Market 4Q 1999 Market Growth

Rank Vendor Shipments Share Shipments Share 2000/99

1 Dell 2,797 22.3% 2,110 16.9% 32.5%

2 Compaq 1,916 15.3% 2,024 16.2% -5.3%

3 Hewlett-Packard 1,550 12.4% 1,282 10.3% 20.8%

4 Gateway 1,077 8.6% 1,156 9.2% -6.8%

5 IBM 744 5.9% 694 5.6% 7.2%

Others 4,457 35.5% 5,242 41.9% -15.0%

Total 12,541 100.0% 12,509 100.0% 0.3%

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, January 2001

Table 2

Top 5 Vendors, Worldwide PC Shipments, Fourth Quarter 2000 (Preliminary)

(Thousands of Units)

4Q 2000 4Q 2000 Market 4Q 1999 Market Growth

Rank Vendor Shipments Share Shipments Share 2000/99

1 Compaq 4,771 13.0% 4,578 13.6% 4.2%

2 Dell 4,397 12.0% 3,360 10.0% 30.9%

3 Hewlett-Packard 2,928 8.0% 2,472 7.4% 18.5%

4 IBM 2,690 7.3% 2,493 7.4% 7.9%

5 Fujitsu Siemens 1,882 5.1% 1,692 5.0% 11.3%

Others 20,012 54.6% 18,985 56.5% 5.4%

Total 36,681 100.0% 33,580 100.0% 9.2%

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, January 2001

About IDC

IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and ebusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC's customers comprise the world's leading IT suppliers, IT organizations, ebusiness companies, and the financial community. Additional information can be found at www.idc.com.

IDC is a division of IDG, the world's leading IT media, research and exposition company.

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