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Lower prices drive PC shipment growth in Q2

Posted: 24 Jul 2006 ?? ?Print Version ?Bookmark and Share

Keywords:PC? shipment? Intel? AMD? Gartner?

Driven by price cuts, worldwide PC shipments totaled 54.9 million units in the second quarter of 2006, an 11 percent increase from the same period last year, according to preliminary results by Gartner Inc.

CPU inventory clearance activity by Intel, and generally more aggressive pricing by Intel and AMD are said to have attributed to lower prices in the quarter. The impact of the CPU price decline varied among regions. In the United States and Asia-Pacific, the cuts increased shipments, while in Europe, Middle East and Africa where there remains higher-than-normal finished goods inventory, shipments were adversely impacted.

"On a worldwide basis, large vendors continued to gain share at the expense of mid-tier vendors and system builders," said Charles Smulders, vice president of Gartner's client computing group. "The price cuts during the quarter undoubtedly helped the large vendors, as they were able to put more pricing pressure on the smaller players. Intel's accelerated ramp on its new CPU lines will expose those vendors who have not invested enough in tools and processes to manage their supply chain."

"The consumer market continued to lead the U.S. PC market, as mobile PC shipments remained strong. Accelerated price declines associated with the CPU oversupply stimulated additional mobile demand," said Mikako Kitagawa, principal analyst for Gartner Dataquest's client computing markets group. "The professional market experienced slow growth mainly due to the sluggish sales in the large enterprise market, however the small business market continued to grow steadily."

According to Gartner, Asia-Pacific and Latin America continued to be the regions with the strongest growth rates. The Asia-Pacific PC market grew 22.5 percent, as shipments reached 12.4 million units in the second quarter. The region was driven by mobile PC shipments which increased 48 percent in the quarter compared to the same period last year.

Latin America PC shipments increased 27 percent in the second quarter with shipments totaling 4.2 million units. Local-branded vendors experienced accelerated growth due to their strong retail presence and their participation in low cost PC programs.

In Japan, PC market growth was nearly flat as shipments reached 3.5 million units in the second quarter, a 0.5 percent increase from the same period last year. Negative consumer growth was offset by stronger sales in the professional market.




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