Global PC sales remain strong

The global PC market remained strong in the third quarter of 2004 with growth of nearly 12 per cent driven by commercial demand and continued strength in EMEA, new research has found.

According to IDC's Worldwide Quarterly PC Tracker, total shipments rose to 44.2 million units for the quarter, about 0.5 per cent ahead of forecast and second only to the fourth quarter of 2003 in total volume.

Aggressive pricing, coupled with mobile adoption, the business replacement cycle and a strong euro, were the primary market drivers.

"PC market performance in the third quarter reflects persistent commercial activity and continuing demand in areas such as mobile computing, Europe and the rest of the world," said Loren Loverde, director of IDC's Worldwide Quarterly PC Tracker.

"Nevertheless, we would like to see more consumer activity going into the fourth quarter, and growth in Asia could have been stronger."

Despite rumblings in the supply chain, Intel's inventory problem, and isolated warnings by various companies, the market appears to have been driven by larger factors, added Roger Kay, vice president of client computing at IDC.

"Among these factors, the overall economy holds the greatest sway over PC market performance," he said.

"But structural dynamics - the degree of saturation in a given region, where we are in the replacement cycle, and rising performance requirements - also clearly play an important role."

The market research found that EMEA, which saw continued growth in notebook shipments during the back-to-school season, combined with desktop replacements across business and consumer segments, sustained another strong quarter.

In contrast, the US suffered a much more difficult year with growth expected to slow from previous quarters, although year-on-year growth in the third quarter of this year was slightly ahead of expectations.

The study indicated that Dell continued to lead the market and expand its share with more than 20 per cent growth year on year.

HP remained the market leader in EMEA, but saw year-on-year growth in the US drop to low single digits due to a "difficult comparison" with the company's aggressive push in the second half of 2003 and rising competition in the consumer segment.