Gartner Projects Double-Digit Growth for Worldwide PC Industry in First Quarter of 2004; Analysts Expect Consistent Growth for the PC Market Throughout the Year.

Business Editors/High-Tech Writers

STAMFORD, Conn.--(BUSINESS WIRE)--Feb. 12, 2004

Driven by continuing strong demand in the consumer segment, the worldwide PC market is forecast to reach 44 million units in the first quarter of 2004, a 13.3 percent increase over the first quarter of 2003, according to a preliminary forecast by Gartner, Inc. Gartner (NYSE:IT)(NYSE:ITB) analysts said expanding mobile technologies are persuading many consumers to purchase new equipment.

"Falling entry prices, better price-performance capability and rising awareness among home users concerning the benefits and availability of wireless technologies are major drivers in the home mobile market," said George Shiffler, principal analyst for Gartner's computing platforms and economics research. "The explosion of digital content devices and creation tools will also help drive PC sales in the home market."

For the year 2004, PC shipments are expected to top 187 million units, a 13.9 percent increase from 2003 shipments. The worldwide PC market is forecast to experience double-digit growth all four quarters in 2004. PC vendors can anticipate stronger growth in the business segment in 2004, especially in the United States.

"As the economy improves, many U.S. businesses will need to replace PCs that were bought back in 2000," said Kiyomi Yamada, industry analyst for Gartner's computing platforms worldwide group. "However, we do not expect stronger sales into the business segment until the recovery consolidates later in the year. Many enterprises are encouraged by signs of an economic recovery, but they are not rushing out to buy new systems. They will likely take a slow approach when replacing these older PCs, especially if employment growth continues to lag."

On a global basis, the Western European business PC market performed above average in 2003, while the U.S. business market performed below average. Gartner analysts said strong business growth in Western Europe can be attributed to depreciation of the U.S. dollar against the Euro, which is giving greater spending power to Eurozone businesses.

"We expect Eurozone businesses will continue to enjoy enhanced spending power throughout 2004, so long as the dollar remains weak against the Euro," Shiffler said. "In any event, we believe upcoming growth in the U.S. market will more than compensate for any weak Eurozone sales."

Additional information is available in the Gartner report "1Q04 PC Forecast Scenario Update: Raised Expectations." The report provides preliminary projections for the worldwide PC industry both on a shipment and revenue basis. The report is available on Gartner's Web site at http://www3.gartner.com/DisplayDocument?id=424087&ref=g_search.

About Gartner

Gartner, Inc. (NYSE:IT and ITB) is the leading provider of research and analysis on the global information technology industry. Gartner serves more than 10,000 clients, including chief information officers and other senior IT executives in corporations and government agencies, as well as technology companies and the investment community. The Company focuses on delivering objective, in-depth analysis and actionable advice to enable clients to make more informed business and technology decisions. The Company's businesses consist of Gartner Intelligence, research and events for IT professionals; Gartner Executive Programs, membership programs and peer networking services; and Gartner Consulting, customized engagements with a specific emphasis on outsourcing and IT management. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, and has 3,700 associates, including more than 1,000 research analysts and consultants, in more than 75 locations worldwide. For more information, visit www.gartner.com.