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The Australian PC Market continues its robust growth rates: Gartner

  • 13 August, 2004 08:45

<p>Australia, August 13, 2004 - THE AUSTRALIAN PC market ended the first half of the year with another stellar performance. Second quarter results indicated year on year growth of 14.4 percent while sequential growth was 8.6 percent. “Demand was strong from both the professional and consumer space respectively”, said Andy Woo, Principal Analyst for Gartner’s Hardware and Systems group.</p>
<p>“Traditionally the second quarter is a good indicator of how the PC market will pan out for the rest of the year. Given the strong growth rate we can expect another healthy double-digit growth in the Australian market for 2004. In the professional space demand was particularly strong in the small and medium size businesses (SMB) while consumer sentiment remained highly positive. The stable economic environment will continue to be a key catalyst in the Australian PC space”, said Woo.</p>
<p>The mobile PC market recorded a year on year growth of 36 percent. “There is certainly a mindset shift on how end users perceive mobile PC”, Woo believes. “As the price performance gap continues to narrow with a desktop - end users are beginning to embrace mobile PC as the platform of choice”.</p>
<p>From an Australian market share perspective HP remained firmly in the number one position with 19.7 percent market share followed by Dell with 12 percent (see Table 1). Acer remained at number three with 7.8 percent market share while IBM came in fourth with 6.5 percent market share.</p>
<p>Table 1
Australia PC Market Share for 2Q04 (Units)
Company 2Q04 Market Share (%) 2Q03 Market Share YOY Growth (%)
HP 19.7 17.3 29.8
Dell 12.0 10.0 37.5
Acer 7.8 5.6 59.0
IBM 6.5 7.5 -0.3
Toshiba 5.3 4.6 33.3
Others 48.7 55.0 1.2
Total 100.0 100.0 24.0
Note: Data includes deskbased PCs, mobile PCs, and IA32 servers.
Source: Gartner Dataquest (August 2004)</p>
<p>Asia Pacific PC market shipments in the second quarter 2004 increased 16.5 percent compared to a year ago, equivalent to 2.1 percent sequentially (Table 2). China, India and Thailand continue to drive growth in the region with rates exceeding 30 percent. PC shipments from the three countries make up 60 percent of total PCs shipped in APAC. “The upbeat economies of these countries as well as vendors’ execution of programs that are targeting second tiered cities are generating new PC demand,” said Lillian Tay, Principal Analyst of Hardware and Systems, Asia Pacific.</p>
<p>All other countries with the exception of South Korea and Philippines recorded steady year over year growth rates. Weak consumer demand pulled down the total PC market in South Korea with the lack of purchasing confidence impacting not only PC sales but other consumer items as well. The Philippines decline for the quarter was attributed to the political situation where the result of the presidential election was contested for weeks that led to uncertainties in the economic direction.</p>
<p>Table 2
Asia/Pacific PC Unit Shipment Estimates, 2Q04 (in thousands)
Company 2Q04 Shipments 2Q04 Market Shares 2Q03 Shipments 2Q03 Market Shares 2Q03-2Q04 Growth
Lenovo 870.7 10.5% 711.7 10.0% 22.3%
Hewlett-Packard 853.4 10.3% 634.2 8.9% 34.6%
IBM 610.5 7.4% 472.8 6.7% 29.1%
Dell Inc. 569.5 6.9% 408.1 5.8% 39.5%
Founder Electronics 350.8 4.2% 205.5 2.9% 70.7%
Others 5,007.9 60.7% 4,660.0 65.7% 7.5%
Total 8,262.8 100.0% 7,092.3 100.0% 16.5%
Note: Data includes deskbased PCs, Mobile PCs and x86-32 servers; IBM includes LG-IBM
Source: Gartner August 2004</p>
<p>On a vendor basis, Lenovo has regained its number 1 spot in Asia Pacific from Hewlett Packard who was the leading vendor for the first quarter of 2004. All top 5 vendors experienced double digit growth as well as gains in market shares as they continue to take away sales from the smaller vendors and white box vendors. “The economies of scale gives price advantage; vendor’s internal re-organization have aligned and focused on the home, small and medium business; successful execution of programs - are factors that have helped to bring in more sales for these vendors,” added Tay.</p>
<p>Please contact Jo Lobban on 9459 4692 or for figures/table or to speak with Andy Woo.</p>
<p>About Gartner
Gartner, Inc. is the leading provider of research and analysis on the global information technology industry. Gartner serves more than 10,000 clients, including chief information officers and other senior IT executives in corporations and government agencies, as well as technology companies and the investment community. The Company focuses on delivering objective, in-depth analysis and actionable advice to enable clients to make more informed business and technology decisions. The Company's businesses consist of Gartner Intelligence, research and events for IT professionals; Gartner Executive Programs, membership programs and peer networking services; and Gartner Consulting, customised engagements with a specific emphasis on outsourcing and IT management. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, and has more than 3,500 associates, and including more than 1,000 research analysts and consultants, in more than 75 locations worldwide. For more information, visit</p>

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