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Consumers rescue fourth quarter

Consumers rescue fourth quarter

Y2K could have been a disaster for the PC industry if it hadn't been for continued consumer confidence.

Amidst corporate Y2K lockdowns the PC market experienced 9.9 per cent growth in Q4 99 over the same period in 98, with consumer spending on desktops increasing by 32.3 per cent.

"Of that (495 000 PCs shipped) 390 000 (78 per cent) were desk tops. We saw a rise in notebooks and a decrease in PC servers shipped. This is consistent with the overall trend which was an increase in consumer spending and a decrease in corporate spending as a result of the Y2K lock down," explained Logan Ringland, market analysis, PCs, for IDC.

Consumers remained unfazed by the spectre of Y2K, instead buoyed by a strong economy, increased PC affordability, pre Christmas spending and a touch of millennial euphoria.

The consumer orientation of the fourth quarter is reflected in the performances of the top vendors. Compaq retained its number one position with 14.5 per cent and IBM remained at number two with 11.8 per cent but Hewlett Packard climbed back to third spot over Dell in fourth and Apple in fifth.


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