Gartner Dataquest Says Worldwide PC Market Growth Was Less Than 15 Percent in 2000

SAN JOSE, Calif., January 19, 2001 — Because of slowed growth during the fourth quarter of 2000, the worldwide personal computer industry posted moderate gains for the year, according to preliminary results from Dataquest Inc., a unit of Gartner Group, Inc. (NYSE: IT and ITB). Worldwide PC shipments totaled 134.7 million units in 2000, an increase of 14.5 percent over 1999 shipments (see Table 1). PC shipments in the United States grew 10.3 percent in 2000.

"The PC industry was hurt by a sluggish 2000 fourth quarter when worldwide PC shipments increased just 10 percent and U.S. shipments increased 6.4 percent," said Charles Smulders, principal analyst of Gartner Dataquest's Computing Platform Worldwide group. "The downturn in growth is concrete evidence that saturation in key segments is playing an increasingly important role in overall market growth, with new shipments unable to mask the effects of economic cycles on replacement buying.

"The timing of the economic downturn was unfortunate for the industry in the sense that it coincided with the largest home sales quarter, a segment that is typically the fastest to respond to economic uncertainty. However, preliminary estimates also point to a weak professional market performance as well."

Table 1
Preliminary Worldwide PC Vendor Unit Shipment Estimates for 2000 (Thousands of Units)
Company 2000 Shipments 2000 Market Share(%) 1999 Shipments 1999 Market Share(%) Growth(%)
Compaq 17,203 12.8 15,870 13.5 8.4
Dell 14,536 10.8 11,459 9.7 26.9
Hewlett-Packard 10,237 7.6 7,600 6.5 34.7
IBM 9,162 6.8 9,331 7.9 -1.8
NEC 5,848 4.3 6,045 5.1 3.3
Gateway 5,110 3.8 4,745 4.0 7.7
Others 72,642 53.9 62,577 53.2 16.1
Total Market 134,738 100.0 117,626 100.0 14.5
Note: Data includes desk-based PCs, mobile PCs and PC servers.
Source: Gartner Dataquest (January 2001)

Dell and HP were the only top-tier vendors to experience growth rates above the industry average both worldwide and in the United States (see Tables 1 and 2). Some of Dell's success was attributed to its aggressive pricing strategy during the quarter. Gartner Dataquest analysts said HP continued to leverage its strong consumer franchise and solid support of the retail channel.
Table 2
Preliminary U.S. PC Vendor Unit Shipment Estimates for 2000 (Thousands of Units)
Company 2000 Shipments 2000 Market Share(%) 1999 Shipments 1999 Market Share(%) Growth(%)
Dell 9,430 19.1 7,263 16.2 29.8
Compaq 7,615 15.4 7,234 16.1 5.3
Hewlett-Packard 5,641 11.4 3,939 8.8 43.2
Gateway 4,271 8.6 4,021 9.0 6.2
IBM 2,674 5.4 3,290 7.3 -18.7
Others 19,800 40.1 19,065 42.5 17.4
Total Market 49,432 100.0 44,811 100.0 10.3
Note: Data includes desk-based PCs, mobile PCs and PC servers.
Source: Gartner Dataquest (January 2001)

"While lower growth rates during the fourth quarter last year made for a disappointing quarter for the industry, it does help allay some of the fears of inventory overhang going into the first quarter of 2001, particularly in the U.S. retail market," Mr. Smulders said. "This is better news for the industry, both because it suggests that vendors were able to take some action to stem and reduce the build up evident in the early part of the quarter, and the anticipated sell off of excess finished goods' impact on 2001 first quarter shipments should be less pronounced."

These results are preliminary. Final statistics will be available soon to clients of Gartner Dataquest's PC Quarterly Statistics Worldwide by Region program. This program offers a comprehensive and timely picture of the worldwide PC market, allowing product planning, distribution, marketing and sales organizations to keep abreast of key issues and their future implications around the globe. To subscribe to this program, please call 800-419-DATA, or 408-468-8009.

Gartner Dataquest is the recognized leader in providing the high-technology and financial communities with market intelligence for the semiconductor, computer systems and peripherals, communications, document management, software, and services sectors of the global information technology industry.

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