Gartner Says Business Segment Drives Worldwide PC Shipments to 13 Percent Growth in First Quarter of 2004.

Business Editors/High-Tech Writers

STAMFORD, Conn.--(BUSINESS WIRE)--April 15, 2004

PC vendors received a boost in sales in the first quarter of 2004 as businesses increased system purchases. Driven by the business segment, worldwide PC shipments totaled 45.3 million units in the first quarter of 2004, a 13.4 percent increase from the same period last year, according to Gartner, Inc.

"The business segment was supported by increased PC replacement activity, as business confidence improved in most regions," said Charles Smulders, vice president of Gartner's Computing Platforms Worldwide group. "Our forecast model shows strong PC replacement demand throughout 2004."

The top 5 vendors, all of whom experienced double-digit growth, propelled the worldwide PC industry's growth. Dell returned to the No. 1 position based on shipments (see Table 1), as it showed solid growth across all regions. Dell's overseas expansion continued with overseas sales exceeding 40 percent of Dell's total shipments for the first time.

Table 1
Preliminary Worldwide PC Vendor Unit Shipment Estimates for 1Q04
(Thousands of Units)
----------------------------------------------------------------------
                              1Q04    1Q04       1Q03    1Q03    1Q03-
Company                   Shipments  Market  Shipments  Market   1Q04
                                     Share              Share   Growth
                                        (%)                (%)     (%)
----------------------------------------------------------------------
Dell                         7,493    16.5      5,825    14.6    28.6
Hewlett-Packard              6,334    14.0      5,441    13.6    16.4
IBM                          2,243     4.9      1,866     4.7    20.2
Fujitsu/Fujitsu Siemens      1,834     4.0      1,626     4.1    12.8
Acer                         1,384     3.1      1,022     2.6    35.4
Others                      26,026    57.4     24,174    60.5     7.7
Total                       45,314   100.0     39,953   100.0    13.4
----------------------------------------------------------------------
Note: Data includes desk-based PCs, mobile PCs and IA-32 servers.
Source: Gartner Dataquest (April 2004)

Hewlett-Packard had slower growth than the past few quarters, as the company suffered an inventory surplus in the U.S. retail market in the early part of the first quarter. Gartner analysts said HP scaled back orders in February and reduced inventory to more normal levels by the close of the quarter.

In the United States, the professional market showed increased sales in the quarter. However, this was offset by weaker sales in the U.S. retail market. U.S. PC shipments grew 11.6 percent in the first quarter of 2004 (see Table 2) as Dell's market share surpassed 30 percent.

Table 2
Preliminary U.S. PC Vendor Unit Shipment Estimates for 1Q04
(Thousands of Units)
----------------------------------------------------------------------
                              1Q04    1Q04       1Q03    1Q03    1Q03-
Company                   Shipments  Market  Shipments  Market   1Q04
                                     Share              Share   Growth
                                        (%)                (%)     (%)
----------------------------------------------------------------------
Dell                         4,489    30.3      3,634    27.4    23.5
Hewlett-Packard              2,544    17.2      2,274    17.1    11.9
IBM                            606     4.1        568     4.3     6.7
eMachines                      479     3.2        364     2.7    31.5
Gateway                        405     2.7        489     3.7   -17.2
Others                       6,274    42.4      5,932    44.7     5.8
Total                       14,797   100.0     13,262   100.0    11.6
----------------------------------- ------- ---------- ------- -------
Note: Data includes desk-based PCs, mobile PCs and IA-32 servers.
Source: Gartner Dataquest (April 2004)

All regions experienced an increase in PC shipments in the first quarter of 2004. The growth rates ranged from 17 percent PC shipment growth in Europe, Middle East and Africa (EMEA) to nearly 6 percent growth in Japan.

These results are preliminary. Final statistics will be available soon to clients of Gartner'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 408-468-8000. Additional research can be found on Gartner's Client Platforms Focus Area on Gartner's Web site at http://www.gartner.com/research/focus_areas/asset_57051_815.jsp.

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