Gartner Says Global PC Shipment Growth Will Slow to 9 Percent in 2005; Mobile PC Growth Forecast to Substantially Outpace Desk-based Systems.

STAMFORD, Conn. -- Worldwide PC shipments are projected to total 199 million units in 2005, a 9 percent increase from 2004, according to a preliminary forecast by Gartner, Inc. PC shipments topped 183 million units in 2004, an 11.6 percent increase over 2003.

Gartner expects mobile PC shipments to drive market growth by increasing 17.4 percent in 2005. Meanwhile, desk-based PC shipments are only forecast to grow 6.1 percent.

"Overall shipment growth is expected to slow this year as both professional and home users wind down major replacement cycles," said George Shiffler, principal analyst for Gartner's Client Platforms research. "We believe professional replacement activity peaked in 2004 and will decelerate sharply over 2005. While home replacement activity will continue to provide some strength to the market in 2005, it too seems likely to slow by year-end. "

"Even so, mobile PC unit growth should outpace desk-based growth considerably again this year," Mr. Shiffler added. "Mobile PCs are becoming increasingly attractive to a broad range of users. There are a number of reasons for this including rapidly falling system prices, enhanced wireless experiences, and expanded multimedia/entertainment functionality."

"Market growth could prove stronger if PC manufacturers are somehow able to position the PC as a digital media hub," said Kiyomi Yamada, analyst for Gartner's Client Platforms research. "However, we are skeptical that PC vendors can take advantage of this opportunity."

"Media PCs remain relatively expensive and suffer from spotty reliability as well as troublesome ease-of-use," Ms. Yamada said. "PCs are also handicapped by low interoperability with other media devices and poor aesthetics. This is hurting their ability to compete against alternative devices that are both cheaper and more readily connected to media sources."

Additional information is available in the Gartner report "1Q05 Update: Global PC Forecast Scenarios, 2005-2006." The report provides preliminary projections for the worldwide PC industry, both on a revenue and shipment basis. This document is available on Gartner's Web site at http://www3.gartner.com/DisplayDocument?ref=g_search&id=471482.

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 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 more than 3,500 associates, including approximately 1,000 research analysts and consultants in more than 75 locations worldwide. For more information, visit www.gartner.com.