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PC market poised for moderate growth in Q3 '02

Posted: 22 Oct 2002 ?? ?Print Version ?Bookmark and Share

Keywords:PC? Gartner Dataquest? Dell? Hewlett-Packard?

Worldwide PC shipments in Q3 of 2002 increased by 5.8 percent from the same period last year, according to the preliminary results of a study by Dataquest Inc., a unit of Gartner Inc. While the industry did grow, Gartner Dataquest analysts point out that during Q3 of last year, the PC industry was affected by the September 11, 2001 attacks.

"In 3Q of 2001, the worldwide market declined 12.4 percent compared to the previous year, in part because of the shipment stoppages immediately following the terrorist attacks of Sept. 11," said Charles Smulders, VP of Gartner Dataquest's Computing Platforms Worldwide group. "Therefore, in the third quarter of 2002, year-on-year growth rates artificially inflate the true shipment picture."

Dell's worldwide PC shipments are reported to have increased by 20.7 percent in 3Q of 2002, and its market share in the U.S. reached 28.9 percent. Gartner adds that Hewlett-Packard also showed some improvement in Q2 of 2002, arresting the pace of decline the combined companies had experienced in previous quarters.

Economic conditions continue to dissuade many corporations from replacing PCs, despite an increasing need to do so as pre-Y2K machines come to the end of their life cycle, Gartner analysts say. If this a growth-orientated economic environment, the replacement cycle would have begun this quarter, they add.

"However, in the current environment, and with no economic upturn expected until the first quarter of 2003 at the earliest, this is unlikely to happen until the middle of next year," Smulders adds. "In the meantime, organizations will have to bear the cost of maintaining older machines and the risk of lower productivity."

On a regional basis, the U.S., Europe, the Middle East, and Africa, and Asia/Pacific all exhibited single-digit growth during the quarter, while Latin America and Japan had decline in shipments, Gartner reports.

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