Worldwide PC market gains momentum, according to IDC

Worldwide PC shipments of 33.2 million were up 7.6% year-on-year in the second quarter according to IDC's Worldwide Quarterly PC Tracker as aggressive pricing and strong portable adoption drove the market. The new quarter's results were ahead of projections for 4.1% growth due to the strong response to pricing initiatives in the U.S. and Europe, as well as the limited impact of SARS on demand in Asia. This is the fourth consecutive quarter of positive growth and represents the highest growth rate since the end of 2000."The market is definitely moving in the right direction," said Loren Loverde, director of IDC's Worldwide Quarterly PC Tracker. "It seems we dodged a bullet with SARS, and the market remains cautious, but growth in the U.S. & Europe is ahead of schedule and we're still expecting increased business spending and continued portable adoption. There's a chance the results are driven by aggressive short term pricing, so I wouldn't throw caution to the wind, but these are very good results."Regional Outlook * United States – Responding to aggressive pricing, the U.S. market came in above forecasts with growth of 8.1%. The consumer segment seems to have led growth, but the public sector was more resilient than expected, and commercial demand is showing signs of improvement. * EMEA – The EMEA market came in slightly above forecasts as price declines stimulated demand, and growth in portables remained strong. The small and medium business segment continues to be the healthiest part of the market, in part due to aggressive pricing and marketing initiatives. Overall consumer spending remains moderate with strong demand for portables supported by greater availability of entry-level systems. Corporate spending remains cautious.* Japan – Shipment growth improved somewhat in Japan following a disappointing first quarter. Nevertheless, some of the improvement was due to an easy year-on-year comparison as the soccer World Cup distracted consumers from purchases while the market was suffering from export weakness in 2001 and 2002. The latest results reflect a slight improvement, but the market remains constrained.* A/P – Asia/Pacific also beat forecasts as major markets recovered from the SARS scare more quickly than expected. Growth slipped only minimally from the first quarter and is expected to improve the rest of the year as the market moves beyond SARS and looks for growing export business.Vendor Highlights * Dell – Dell had a very strong quarter, boosting year-on-year growth to nearly 29% worldwide and sustaining a growth premium versus the market of over 20% in the second quarter. Dell's performance was supported by strong international sales, and growth across form factors. The company's strategy of targeting key segments in specific geographies has proven successful and well executed.* HP – Also had a strong quarter, growing faster than the market both in the U.S. and worldwide. The gains reflect growing consumer sales in response to aggressive pricing as well as some activity in the commercial segment. Consumer spending also contributed to strong results in EMEA.* IBM – Rounding out the top 3, IBM also performed well with 12% growth worldwide and over 20% in Europe. IBM saw solid sales of the recently launched ThinkCenter line as well as growth in portable PCs and wireless enabled systems.* Fujitsu-Siemens – Fujitsu Siemens had a solid quarter, beating market growth in its key markets of Japan by nearly 9% and holding ground in Western Europe with solid portables shipments. * Gateway – Although shipment and growth data are still being finalized, Gateway continues to face growing competition in key consumer and small business segments. The company's efforts to diversify its product offering may help profitability, but the broader consumer electronics market is already competitive, and the diversification is unlikely to boost PC volumes significantly. IDC will release The Top 5 Vendors for U.S. PC shipments after Gateway's financial earnings release on July 24 Source: IDC