Driven by continuing strong demand in the consumer segment and pervasive mobile technologies, the worldwide PC market is forecast to reach 44 million units in Q1, a 13.3 percent increase over Q1 2003, according to a preliminary forecast by Gartner Inc.

"Falling entry prices, better price-performance capability and rising awareness among home users concerning the benefits and availability of wireless technologies are major drivers in the home mobile market," said George Shiffler, a principal analyst at Gartner, in a statement. "The explosion of digital content devices and creation tools will also help drive PC sales in the home market."

For the year 2004, the firm said PC shipments will top 187 million units, a 13.9 percent increase from 2003 shipments, pushed by double-digit growth all four quarters in 2004. Vendors can anticipate stronger growth in the business segment in 2004, especially in the United States, Gartner added.

"As the economy improves, many U.S. businesses will need to replace PCs that were bought back in 2000," said Kiyomi Yamada, an industry analyst at Gartner, said in a statement. "However, we do not expect stronger sales into the business segment until the recovery consolidates later in the year. Many enterprises are encouraged by signs of an economic recovery, but they are not rushing out to buy new systems. They will likely take a slow approach when replacing these older PCs, especially if employment growth continues to lag."

The Western European business PC market performed above average in 2003, while the U.S. business market performed below average, according to Gartner. Strong business growth in Western Europe can be attributed to depreciation of the U.S. dollar against the euro, which is giving greater spending power to "Eurozone" businesses, the firm said.

"We expect Eurozone businesses will continue to enjoy enhanced spending power throughout 2004, so long as the dollar remains weak against the euro," Shiffler said. "In any event, we believe upcoming growth in the U.S. market will more than compensate for any weak Eurozone sales."

By: DocMemory
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