CONSUMER NOTEBOOKS DRIVE WORLDWIDE PC GROWTH TO 15.7%.

Worldwide PC shipments of 38.4 million were up 15.7% year-on-year in the third quarter of 2003, according to IDC's Worldwide Quarterly PC Tracker, as notebooks continued to drive demand. The United States and Europe were particularly hot, with growth of 16.1% and 17.5% respectively. While demand in Asia was in line with forecasts of roughly 10% growth, the strong showing in the U.S. and Europe boosted worldwide growth ahead of forecasts by roughly 5% from projections of 10.4%.

"We continue to see phenomenal growth in portables," said Loren Loverde, director of IDC's Worldwide Quarterly PC Tracker. "Consumers in particular have reacted to low prices and wireless features. Although commercial spending remains cautious, even this segment is making some progress."

"Aided by modest but sustained economic recovery in most regions, an aging base, and great features and deals, the PC market finally got the boost everyone's been looking for," said Roger Kay, VP of client computing at IDC. "Mobility is all the rage, but even desktops seem to have done reasonably well."

Regional Outlook

-- United States -- Solid consumer demand and increased government spending gave the U.S. market a major boost in the third quarter. While business spending remains selective with signs of improvement, notebooks and a competitive retail environment are heating up demand going into the holiday season.

-- EMEA -- EMEA also saw a surge in demand driven by a growing selection of entry-level products and aggressive pricing that pushed notebook growth above 50% year-on-year. Consumer and SMB demand remains the foundation of this growth although corporate spending also contributed.

-- Japan -- As expected, growth in Japan rose to near 10% as consumer PC demand gradually recovers. Nevertheless, the weak economy continues to limit prospects for greater commercial spending and consumer growth is not expected to reach double digits until 2004.

-- A/P -- Asia/Pacific (excluding Japan) continued to move beyond SARS, posting an incremental gain on second quarter growth. China continues to lead the region, with strong consumer growth in the quarter. India also contributed with a rise in activity in the banking sector while shipments for Thailand's ICT initiative were behind expectations.

Vendor Highlights

-- Dell -- Dell continued to perform extremely well, sustaining overall growth of 27.9%. Growth in Asia/Pacific topped 50% in the quarter, while no major region grew by less than 24% year-on-year. Dell's growth premium relative to the rest of the market dipped slightly due to the high growth in EMEA and U.S. retail, but remained above 13%.

-- HP -- A dramatic rise in U.S. growth helped boost worldwide shipments by 28%. Strong consumer and portable growth helped HP achieve sequential growth of 21% and narrow Dell's lead to 127,000 systems or 0.3% of worldwide shipments.

-- IBM -- IBM topped 15% growth year-on-year completing it's fourth consecutive quarter of positive growth worldwide. IBM's strong double digit growth in every major region except the US was primarily driven by strong mobile adoption and demand for wireless capabilities.

-- Fujitsu Siemens -- Fujitsu Siemens had a solid quarter, gaining ground in Japan while managing double-digit growth in Europe. The company's focus on mobility and a retooled channel strategy in Europe were keys to growth.

-- Toshiba -- Facing tough competition in the portables market, Toshiba grew by 7.8% worldwide. Growth in Europe and Asia remained strong while shipments to the U.S. declined.

IDC's Worldwide Quarterly PC Tracker gathers PC market data in 55 countries by vendor, form factor, brand, processor brand and speed, sales channel and user segment. The research includes historical and forecast trend analysis as well as price band and installed base data.

About IDC

IDC is a market intelligence and advisory firm in the information technology and telecommunications industries. They analyze and predict technology trends so that strategic, fact-based decisions can be made on IT purchases and business strategy. Over 700 IDC analysts in 50 countries provide local expertise and insights on technology markets.

IDC is a subsidiary of IDG, a technology media, research, and events company.

IDC can be found on the World Wide Web at http://www.idc.com.

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