Market researcher Gartner Inc. reported late Wednesday that the global PC market expanded at a fast clip during the recently ended quarter with shipment rising 14%, to 42.6 million units from 37.3 million units in the third quarter of 2002.

Gartner said the PC market grew at a double-digit rate for the second consecutive three-month period and noted the increase was propelled by the same desire for wireless products that's driving strong demand for mobile phones and other portable electronic devices.

"Falling system prices, performance improvements and wireless awareness continue to bring notebooks to the attention of buyers, particularly consumers," said Charles Smulders, vice president of Gartner's Computing Platforms Worldwide group.

"Falling prices of LCD screens have increased notebook demand as well as demand for flat panel monitors and the small but emerging growth of LCD TVs," Smulders said

While news of the resurgent PC market provided additional signs of continuing recovery in the electronics market, Gartner's recognition of HP's strong performance"after several quarters of being repeatedly trumped by Dell"gave executives at the Palo Alto, Calif., company a major public relations coup which they were quick to capitalize upon.

Less than one hour after Gartner released its report, HP fired off a quick response, noting that the 28% growth in PC shipment recorded by the company during the third quarter exceeded the industry average by a wide margin.

"The race between HP and Dell just got a lot closer," crowed Jim McDonnell, vice president of marketing at HP's Personal Systems Group. "HP considerably narrowed the gap with only 0.3% points separating HP from the top spot."

Dell held onto the No. 1 global position, but only barely. The company's market share grew to 15.3%, or 6.51 million units, up from 13.6% or 5.1 million units, in the third quarter of 2002.

However, HP, which trailed Dell by 400,000 units in the second quarter, came much closer this time with only 62,000 units separating the company from the market leader. HP's market share rose to 15.1% from 13.5% in the 2002 comparable quarter.

"HP's strongest performance was in the U.S. market, although its performance in the Europe, Middle East and Africa region and Asia-Pacific region were significantly above the market averages," Gartner's Smulders said. "HP's performance in unit terms is impressive, and with the focus on consumer sales in the holiday season, it is likely to be a close race between Dell and HP in the fourth quarter."

Powered by continuing strength in the consumer, education and notebook markets, the U.S. computer market grew to 15.7 million units during the third quarter from 13.2 million units in the year-ago quarter, according to Gartner, Stamford, Conn.

The research firm warned, however, that the hot portable computer market could trigger a supply chain crisis for manufacturers in the immediate future as suppliers struggle to meet rising demand for LCD screens and other components.

"These shortages may lead to increasing notebook prices in the coming quarters, which could hurt demand," Smulders said. "In the short term, the notebook may become a victim of its own success."

By: DocMemory
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