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Gartner's Dataquest Says European PC Market Suffered from Flat Growth in Professional Segment During Second Quarter 2000
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Egham, United Kingdom, August 3, 2000 - The European personal computer market experienced single-digit growth in the second quarter of 2000 as shipments totaled 7.6 million units, an increase of 8.9 percent over the second quarter of 1999, according to Dataquest Inc., a unit of Gartner Group, Inc. (NYSE: IT and ITB). PC shipments in the professional segment grew 0.3 percent, while the home segment increased 40 percent.
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"Continued lockdown because of year 2000 issues, slow adoption of Windows 2000 and margins erosions in the large account business are the main reasons being given for the slow growth in the professional segment by both vendors and corporate dealers alike. Another reason often cited is of companies diverting IT expenditure into large e-business implementations - if so, where are the corresponding server sales?" asked Howard Seabrook, vice president and director for Dataquest's Computer Systems and Peripherals programs. "We believe these are the symptoms of change, rather than root causes. European IT markets are evolving and, after four strange quarters, we are now living in different times. There is no return to the now seemingly balmy days of 1998."
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Table 1
European Personal Computer Shipment Estimates for Second Quarter 2000
(Thousands of Units)
| Company |
2Q00 Shipments |
2Q00 Market Share (%) |
2Q99 Shipments |
2Q99 Market Share (%) |
Growth (%) |
| Compaq |
1,214 |
15.9 |
1,135 |
16.2 |
6.9 |
| Fujitsu Siemens |
678 |
8.9 |
719 |
10.3 |
-5.8 |
| Dell |
657 |
8.6 |
638 |
9.1 |
3.0 |
| Hewlett-Packard |
551 |
7.2 |
470 |
6.7 |
17.2 |
| IBM |
491 |
6.4 |
610 |
8.7 |
-19.6 |
| Others |
4,041 |
53.0 |
3,433 |
49.0 |
17.7 |
| Total Market |
7,631 |
100.0 |
7,006 |
100.0 |
8.9 |
Source: Dataquest (August 2000)
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Hewlett-Packard was the only top-tier vendor to have a growth rate larger than the industry average (see Table 1). The professional segment accounted for 72.2 percent of the PC market in Europe during the second quarter, with shipments of 5.5 million units. While the home market showed strong growth, this market is still much smaller with second quarter shipments of 2.1 million units.
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Germany was the No. 1 country in the region with shipments of 1.5 million units, an increase of 10.3 percent over the second quarter of last year. The United Kingdom had shipments reach 1.3 million units, up 11.3 percent over the same period last year, and PC shipments in France totaled 0.9 million units, a decline of 0.8 percent. Russia showed the strongest growth in the region, with shipments of 0.3 million units, up 28.7 percent over the second quarter of 1999.
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"Looking ahead, the key for stimulating growth in the professional market will be the reduction of lifecycles," Mr. Seabrook said. "There is a growing number of old PCs out there, which will require replacing over the next 18 months. The first wave of this should be starting to appear by the fourth quarter this year, and we should see a pickup in replacements over 2001."
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Additional information on the European PC market is available in Dataquest's PC Quarterly Statistics Europe program. To subscribe to this program, please call 800-419-DATA, or 408-468-8009. More information about Dataquest's programs, descriptions of recent research reports and full text of press releases can be found on the Internet at www.dataquest.com.
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Gartner's Dataquest is the recognized leader in providing the high-technology and financial communities with market intelligence for the semiconductor, computer systems and peripherals, communications, document management, software, and services sectors of the global information technology industry.
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