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PC Market Maintains Double-Digit Growth in Q1: IDC
By
ChannelTimes Staff
International Desk, Apr 20, 2006
The worldwide PC market continued its solid expansion in the first quarter of 2006 with year-on-year growth of 12.9 percent despite an expected decline from growth of 15.9 percent in 2005, according to IDC's Worldwide Quarterly PC Tracker report.
Nearly all regions were inline or slightly ahead of forecasts for the first quarter, helping boost worldwide shipment growth for 1Q 06 to 12.9 percent, slightly higher than IDC's March forecast of 11.8 percent. Portable adoption remained a key trend in all regions and consumer growth appeared relatively strong following the holiday season, the report stated.
HP and Gateway saw notable surges in growth in the first quarter while growth for Dell and Fujitsu Siemens slowed considerably, particularly in their core markets. HP appears to have benefited from channel efforts and aggressive pursuit of consumers while Gateway made gains in the public sector in addition to the consumer market.
While leading vendors performed fairly well in the quarter with market performance inline or ahead of expectations, the report said Dell may have focused on profitability at the expense of volumes, especially in the United States.
"Market growth ahead of forecasts in almost all regions reflects continuing strong demand," said Loren Loverde, director of IDC's Worldwide Quarterly PC Tracker. "While this bodes well for the short term, Dell's relatively slow growth may set the stage for more aggressive pricing in coming quarters. While this would help drive volumes, it would not help profitability."
The Asia-Pacific (excluding Japan) region maintained robust year-on-year growth of over 20 percent for the third consecutive quarter, despite the expected seasonal sequential decline in volume as expected due to the Lunar New Year celebrations.
The report attributed this growth to strong year-on-year growth in China and Korea, along with continued demand in Thailand and the Philippines despite the political disruptions there.
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