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WORLD WORKSTATION MARKETS TO QUADRUPLE BY 1999, UNIT SALES TO GROW 10-FOLD, AS AVERAGE PRICE DECLINES

 MOUNTAIN VIEW, Calif., Jan. 12 /PRNewswire/ -- The world workstation market will more than quadruple in revenues and grow by more than 10 times in unit sales by the end of the century, swelling from $10.6 billion in 1992 sales to $20 billion in 1995 and $48.7 billion in 1999 at a 24-percent compound annual rate, forecasts a new study just released by Frost & Sullivan/Market Intelligence.
 Enterprise workstations will continue pacing market growth, increasing from 32 percent of all worldwide workstation revenues in 1992 to 51 percent by 1999, projects the report, "World Workstation Markets: Proven Applications With New Pentium/Power PC Chips Attract New Users."
 Total unit sales will grow from some 700,000 in 1992 to 7.5 million worldwide by 1999, with average price per unit declining from approximately $15,000 to under $7,000 as prices drop and less costly units become a larger share of the total market.
 Moving out from traditional scientific and engineering graphics niches, workstations compete today in diverse arenas from the enterprise database transaction market to the graphics supercomputer market. Performance levels have risen to the point workstations reach into the supercomputer category, while the bulk of shipments has shifted downward toward lower- and mid-range segments. Demand for workstations is growing as older proprietary mainframe and minicomputer systems give way to open systems based on client/server and distributed processing models.
 Workstation vendors have introduced new models at both high and low ends to broaden their appeal and offer unified solutions for a range of computing demands. End-users strongly want to avoid paying for products that may soon be technologically obsolete -- as many have in the past with the shift away from mainframes. In response, vendors are trying to offer fully compatible platforms that will protect training and software investments, allowing integration from entry-level desktops up through supercomputers.
 Open systems are increasingly making advantages of interoperability, scalability and portability realities and making it possible for businesses to protect their investments in host computers as well by facilitating their integration into new systems. A key vendor strategy has become product line expandability and scalability, with products designed with the same architecture from low to high end of the product line.
 Vendors have introduced low-end workstations that compete directly with high-end PCs while broadening their high-end product lines, introducing multiprocessing systems and high-performance workstations fully compatible with the entry-level units.
 Workstation market share competition, on top of rapid advances in semiconductor technology, has brought falling price/performance levels and frequent product introductions, meaning in turn steadily shrinking profit margins. Vendors are forced to use economies of scale and design enhancements to cut the size and cost of components to keep prices down while pushing performance levels that users expect from workstations. Most vendors are shifting toward indirect distribution as a strategy for reducing overhead.
 At the high end, dedicated mainframe and supercomputer applications are migrating down to workstation platforms as next-generation processors and multiprocessing configurations deliver superior price/performance ratios, networking capabilities and open system advantages.
 The Pacific Rim and Latin American regions, potentially large markets for both enterprise and graphics workstations, are growing at the world's fastest rates. Europe's share of workstation revenues will decline, in contrast, from 34 percent of the total in 1992 to 28 percent in 1999, while the United States 1992 share of 44 percent increases slightly.
 Frost & Sullivan is an international high-technology research firm specializing in information and industrial technology. All Frost & Sullivan reports are based on extensive interviews with marketing and technical experts from selected companies in each market segment. Primary research is validated by thorough analysis of available secondary research. Frost & Sullivan is the leading publisher worldwide of high-technology market research reports.


Total Workstation Market: Unit Shipment and Revenue Forecasts (World),
 1989-1999
 Revenue
 Units Revenues Growth
 Year (000) ($ Million) Rate (%)
 1989 335.4 6,627.5 ---
 1990 428.3 7,888.1 19.0
 1991 537.0 9,036.0 14.6
 1992 703.2 10,578.2 17.1
 1993 957.7 12,611.9 19.2
 1994 1,368.7 15,629.5 23.9
 1995 2,004.1 19,929.2 27.5
 1996 2,900.1 25,470.6 27.8
 1997 4,131.1 32,293.0 26.8
 1998 5,686.4 40,149.8 24.3
 1999 7,514.4 48,650.6 21.2
 Compound Annual Growth Rate (1992-1999): 24.4%
 NOTE: All figures are rounded.
 -0- 1/12/94
 /CONTACT: Amy Arnell of Frost & Sullivan/Market Intelligence, 415-961-9000/


CO: Frost & Sullivan/Market Intelligence ST: California IN: CPR SU:

LW-TM -- SJ006 -- 1367 01/12/94 11:00 EST
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Date:Jan 12, 1994
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