Robust Growth in Mexico Results in 15% Increase in the Latin America PC Market in 1999, New IDC Study Reveals

FRAMINGHAM, MASS., FEBRUARY 24, 2000 — The PC market in Latin America achieved strong growth during the fourth quarter of 1999, increasing 22% from Q4 1998 and growing over 15% for all of 1999, according to IDC. Total desktop, notebook, and PC server shipments in Latin America passed 1.86 million units for Q4 1999, totaling over 5.92 million units for the year. Total PC shipment value for the fourth quarter reached over US$2.25 billion and closed at US$7.39 billion for the full year 1999.

The Mexican PC market nearly doubled in the fourth quarter and the full year 1999 from 1998. Total PC shipments in Mexico reached over 1.41 million in 1999, capturing 24% of the region's PC market share. Mexico's explosive growth during the second half of 1999 was largely the result of new financing alternatives and ISP/PC bundle offerings. These strategies boosted demand in all market segments. Large yearend bids in the government sector also contributed to Mexico's strong performance.

"PC shipment growth for 1999 met IDC's forecast, led by the stability of Argentina and Brazil and the strong growth of the Mexican and Chilean PC markets," said Alexandra Martinez, analyst for IDC Latin America PC research. "We expect the Latin American PC market to sustain strong growth in 2000 fueled by promotions and financing options that have been successful in some countries and by replicating them across the region."

IDC's study reveals desktop PCs captured 92% of the region's total PC market share in 1999 with over 5.4 million units, almost half of them represented by non-branded local PC assemblers and small integrators. Chile, Mexico, and countries outside of the top six (rest of Latin America) achieved the strongest notebook growth in the region during Q4.

Compaq positioned itself as the number-one PC vendor in each quarter of 1999, capturing 18% of the region's annual and fourth quarter's PC market shares. The company marked its success in the region in a variety of end-user segments with low pricing and strong marketing.

IBM was the second-largest PC vendor regionally and the top PC vendor in Brazil for Q4 1999. IBM had a good pricing strategy in Brazil and was particularly successful in the government segment in Mexico. Acer was the region's third-largest vendor in Q4 1999, followed by Hewlett- Packard, Alaska, and Dell. IDC is optimistic about Dell's performance in upcoming quarters as the company lowers its prices and improves its local strategy.

IDC's Latin America PC research is available for purchase by contacting Daniel Cardamone at 305-267-2616 or dcardamone@idc.com. For more information about IDC's Latin America research programs, please contact Beth Freedman or Lisa Bloom at 508-872-8200.

With a network of six country offices in Latin America and two regional offices — in Silicon Valley, Calif. and Miami — IDC provides full market coverage of PCs, mainframes, Unix systems and workstations, servers, desktop printers, professional services, local area networks, the Internet, telecom, RDBMS software, distribution channels, NT, and IT spending patterns in Argentina, Brazil, Chile, Colombia, Mexico, and Venezuela. IDC also conducts primary research in Peru, Ecuador, Central America, and the Caribbean. IDC is the leading supplier of IT market information on Latin America.

About IDC

IDC delivers dependable, relevant, and high-impact data and insight on information technology to help organizations make sound business and technology decisions. IDC forecasts worldwide IT markets and technology trends and analyzes IT products and vendors, using a combination of rigorous primary research and in-depth competitive analysis. IDC is committed to providing global research with local content through more than 500 analysts in 43 countries worldwide. IDC's customers comprise the world's leading IT suppliers, IT organizations, and the financial community. Additional information can be found at http://www.idc.com.

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