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Worldwide PC shipments in the third quarter of 2004 increased 9.7% from the same period last year, slightly below previous forecast expectations, according to Gartner’s recently released research. Gartner analysts said global shipments were impacted by slower sales in the US market.

USA Leads PC Buys, Latin America Leads Market Growth

PC shipments in the US grew 5% in the third quarter, however analysts had expected shipments to increase more than 8% in the quarter. In the United States, PC shipments totaled 16.2 million units in the third quarter of 2004, a 5% increase from the third quarter of 2003. Gartner analysts said notebook sales were strong, but desktop demand was much weaker.

Preliminary worldwide PC vendor unit shipments estimates for Q3 2004

Company

Shipments in Q3 2004 (thousands of unit)

Q3 2004 market share

Shipments in Q3 2003 (thousands of unit)

Q3 2003 market share

Year-on-Year growth

Dell

7862

16.8%

6505

15.2%

20.9%

HP

7045

15.0%

6435

15%

9.5%

IBM

2614

5.6%

2242

5.2%

16.6%

Fujitsu-Siemens

1700

3.6%

1552

3.6%

9.6%

Toshiba

1579

3.4%

1342

3.1%

17.6%

Others

26 119

55.7%

24 690

57.7%

5.8%

Total

46 919

100%

42 767

100%

9.7%

The Europe, Middle East and Africa (EMEA) region also performed slightly below expectations. PC shipments totaled 14.3 million units, up 12.6% compared to a year ago. Analysts had expected shipments to grow 14%. Within EMEA, growth in Western and Eastern Europe slowed down while the Middle East and Africa region grew strongly.

Preliminary US PC vendor unit shipments estimates for Q3 2004

Company

Shipments in Q3 2004 (thousands of unit)

Q3 2004 market share

Shipments in Q3 2003 (thousands of unit)

Q3 2003 market share

Year-on-Year growth

Dell

4919

30.4%

4297

27.9%

14.5%

HP

3090

19.1%

3042

19.7%

1.6%

Gateway

832

5.1%

941

6.1%

-11.6%

IBM

797

4.9%

706

4.6%

13.0%

Toshiba

561

3.5%

468

3.0%

19.9%

Others

6006

37.1%

5976

38.7%

0.5%

Total

16 205

100%

15 430

100%

9.7%

In the Asia/Pacific region, India and Australia showed some of the strongest shipment increases with growth rates of 30 and 19%, respectively. Shipments in China grew 11%, however a major concern going forward is the impact of government control measures to prevent overheating of the Chinese economy, Gartner said.

Preliminary EMEA PC vendor unit shipments estimates for Q3 2004

Company

Shipments in Q3 2004 (thousands of unit)

Q3 2004 market share

Shipments in Q3 2003 (thousands of unit)

Q3 2003 market share

Year-on-Year growth

HP

2374

16.6%

2051

16.1%

>15.8%

Dell

1542

10.8%

1128

8.9%

36.7%

Acer

1034

7.2%

657

5.2%

57.5%

Fujitsu Siemens

983

6.9%

822

6.5%

19.7%

IBM

711

5.0%

607

4.8%

17.2%

Others

7581

53.6%

7460

58.6%

2.9%

Total

14 326

100%

12 725

100%

12.6%

PC shipments in Latin America grew 29% percent in the third quarter. The strong shipment increase is attributed to PC replacement demand, lower interest rates, flexible PC vendor purchasing programs, broadband deployment and better system specification/price point positioning.

HP Pushes in Europe, but Dell Sustains Leadership

On a vendor basis, Hewlett-Packard gained market share, but it under performed compared to its leading rivals. It faired better in distribution compared to the second quarter, however, it is still enduring dissatisfaction around its channel strategy. HP’s growth was in line with the industry average, allowing it to maintain its market share compared to a year ago. Regionally HP is coming under pressure in the US retail market as rivals compete more aggressively for shelf space, according to Gartner.

Dell and Fujitsu-Siemens outgrew the market and the combined share of the top 5 vendors continues to increase, heightening the prospect of market consolidation in the middle to lower tiers of the market. Dell extended its unit share lead both worldwide and in the US in the third quarter of 2004. Dell performed particularly well in Europe, with shipments increasing 36.7% compared to the same period last year.

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