U.S. White Box Market Remains Formidable, Accounting for Over 21 % of U.S. PC Shipments in Q1 2001, IDC Says

FRAMINGHAM, MA – JUNE 27, 2001 – As competitive consolidation and a demand downturn drastically change the overall PC market landscape, the U.S. white box market remains anchored in a prominent position. According to IDC, these non-branded PCs comprised more than 21% of total U.S. PC volume in Q1 2001.


For top PC makers, the white box market may well be the next competitive frontier. In Q1 2001, the value of white box shipments in the United States totaled $4.5 billion, a sizable figure likely to attract more competition from established PC brands.

"As the major players start moving in the white box direction, it’s important to understand whether price-aggressive industry heavyweights will shrink the ranks of white box suppliers and resellers. However, the white box market may be so diverse that it will continue to grow, largely sheltered from bigger market forces," said Roger Kay, director of IDC’s Client Computing research. "Depending on industry positioning, the white box segment could represent a competitive threat or a major opportunity."

Much of the white box’s strength resides in segments that fall outside the corporate sector. White box shipment share in the small office (fewer than 10 employees) was 32.8% in Q1 2001. White box was also the leader in the medium-sized business category with a 31.5 % share. Additionally, white box seems to feel right at home in the consumer space, having grabbed a 29% market share of the home segment in Q1 2001.

To help navigate the opportunity in the diverse and dynamic white box market, IDC has launched a special study titled The White Box Opportunity: IDC’s U.S. White Box PC Market Study. The study is designed to answer a number of key questions, including:

· What is the true shipment volume of white box desktop PCs and PC servers in the United States?

· What will the key drivers and inhibitors be for the white box market over the next five years?

· Who are the top white box PC suppliers?

· Which customer segments are forecast to represent the greatest opportunity for the white box?

For additional information on IDC’s white box study, please contact Bruce Stephen at 508-935-4269 or bstephen@idc.com.

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 700 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.

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

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