Aust PC market experiences record high

Aust PC market experiences record high

Whoever said the PC was dead was dreaming - IDC reports record shipments for the second quarter in the Australian market.

537,088 PCs were shipped with Compaq retaining the number-one spot followed closely by Dell, Hewlett-Packard and Gateway. The last three all experienced in excess of 50 per cent growth over figures for the same period last year.

IBM recorded its biggest quarter for PC shipments ever.

IDC analysts Rupinder Toor and Logan Ringland attributed this strong growth to several key factors including price reductions inspired by serious competition between chip makers AMD and Intel.

Creative bundling by both vendors and channel players, such as Chameleon PC, easy finance that requires no deposit, and interest-free deals also encouraged the uptake of PCs in Australia, the report suggested.

Additionally, a spike in small business purchasing in an attempt to alleviate a feared stall on sales because of Y2K issues drove the PC market in the second quarter.

Small businesses are also in pursuit of the e-dollar, which has resulted in this substantial business sector investing in long-term infrastructure.

Strong performances by non-branded PCs meant they contributed an unusually high number of sales to the overall figures.

Finally, seasonal factors suggesting that PC sales are traditionally strong at the end of the financial year and an overall healthy Australian economy underpinned an environment that facilitated exceptionally strong sales.

And according to reports from both Dataquest and IDC, the worldwide PC market grew by more than 26 per cent during this year's second quarter compared to the same period in 1998.

Worldwide shipments reached 25.6 million, reflecting a 2.5 per cent drop from the first quarter, according to IDC. Dataquest put that figure at 25.3 million.

According to Dataquest, all of the "top-tier" vendors - Compaq, Dell, IBM, Hewlett-Packard and Gateway 2000 - enjoyed global shipment growth of 30 per cent or more over 1998's second quarter, with Dell and IBM topping the list at 50 and 47 per cent respectively.

Compaq, meanwhile, had the most worldwide shipments in the second quarter with almost 3.5 million in Dataquest's findings, or more than 3.7 million in IDC's estimate.

IDC credited strong end-user demand and the "free PC" movement for the increased shipments this year, while Dataquest cited lower prices, the Internet and a generally better economic situation.

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