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Worldwide PC Shipments Increased 12% in Q2 07

U.S., Asia/Pacific, and Latin America Markets Experienced Stronger than Expected Growth

Worldwide PC shipments totaled 61.1 million units in the second quarter of 2007, an 11.7 percent increase from the same period last year, according to Gartner, Inc. These results were better than Gartner’s previous projection of 10.6 percent growth for the quarter.

“The PC market experienced a boost from better than expected sales in the United States, Asia/Pacific and Latin America,” said Mikako Kitagawa, principal analyst for Gartner’s Client Computing Markets group. “The U.S. deskbased PC market beat our expectations, due in part to higher than expected sales in the professional market. In the Asia/Pacific region, China and South East Asia saw strong shipment growth.”

The worldwide market continued to be driven by strong consumer PC growth. Mobile PC demand remained strong, while Vista’s impact on consumer demand is considered to have been minimal. Hewlett-Packard remained the No. 1 vendor based on PC shipments, accounting for 18.2 percent of worldwide shipments (see Table 1). HP grew faster than the worldwide market average growth rate for the ninth quarter in a row. HP showed steady growth across all regions and platforms.

Dell continued to struggle, as it experienced lower growth rates than the regional average across all regions. The major weakness continued to be derived from the consumer market. -0-

Table 1
Preliminary Worldwide PC Vendor Unit Shipment Estimates for 2Q07 (Thousands of Units)

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Company 2Q07 Shipments 2Q07 Market Share (%) 2Q06 Shipments 2Q06 Market Share (%) 2Q07-2Q06 Growth (%)
Hewlett-Packard 11,100 18.2 8,129 14.9 36.6
Dell Inc. 9,187 15 9,718 17.8 -5.5
Lenovo 4,879 8 3,994 7.3 22.1
Acer 4,371 7.2 2,836 5.2 54.2
Toshiba 2,393 3.9 1,933 3.5 23.7
Others 29,164 47.7 28,067 51.3 3.9
Total 61,093 100 54,677 100 11.7

Note: Data includes deskbased PCs, mobile PCs and X86 servers.
Source: Gartner (July 2007)

After dropping to the fourth position last quarter, Lenovo retook the No. 3 position in the worldwide rankings from Acer in the second quarter. Lenovo significantly exceeded the worldwide average, showing stronger than regional growth across all regions except Japan.

Despite a year-over-year growth rate of 54.2 percent, Acer still fell to the fourth position. Acer’s growth was fueled by a strong performance in the U.S., coupled with strong growth in the Europe, Middle East and Africa (EMEA) region.

In the U.S. market, PC shipments totaled 15.7 million units in the second quarter of 2007, a 5.9 percent increase from the second quarter of 2006. Gartner had previously projected growth of 3.2 percent.

Dell held onto the No. 1 position in the U.S. market despite growing below the U.S. average growth rate in second quarter (see Table 2). “Dell had difficulties in its consumer business. Dell made its first major retail shipments to Wal-Mart stores, however volumes were not significant enough to influence its growth performance in the quarter,” Ms. Kitagawa said.

HP continued to grow much faster than the U.S. average. Gartner analysts said early results show this growth was mainly driven by both deskbased and mobile PC shipments. The company also showed consistent growth in deskbased PC as well.

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Table 2
Preliminary U.S. PC Vendor Unit Shipment Estimates for 2Q07 (Thousands of Units)

Company 2Q07 Shipments 2Q07 Market Share (%) 2Q06 Shipments 2Q06 Market Share (%) 2Q07-2Q06 Growth (%)
Dell Inc. 4,697 29.9 5,302 35.7 -11.4
Hewlett-Packard 3,945 25.1 3,135 21.1 25.8
Gateway 964 6.1 1,038 7 -7.2
Acer 888 5.6 336 2.3 163.9
Toshiba 870 5.5 564 3.8 54.3
Others 4,362 27.7 4,478 30.1 -2.6
Total 15,725 100 14,855 100 5.9

Note: Data includes deskbased PCs, mobile PCs and X86 servers.
Source: Gartner (July 2007)

In EMEA, PC shipments totaled 18.6 million units in the second quarter, up 11.9 percent from the same period last year. Both the consumer and professional mobile PC markets showed strong growth. Central and Eastern Europe, and the Gulf region in the Middle East and Africa continued to lift the overall EMEA results.

PC shipments in Asia/Pacific totaled 17 million units, an 18.3 percent increase from a year ago. PC shipments in China grew 23.6 percent, driven by strong demand from the professional market. The economy is performing well and the strong domestic stock market has also stimulated PC demand from security companies, banks and other related financial services and telecommunications companies.

The Latin America PC market had PC shipments reach 5.2 million units, a 25 percent increase from the second quarter last year. A robust Latin America home market drove growth. Home PC shipments increased 32 percent in the quarter. This was ten percentage points ahead of the professional segment’s growth rate.

In Japan, PC shipments in the second quarter totaled 3.3 million units, a 4.6 percent decline from the same period last year. Analysts said both the professional and home markets are expected to post lower than expected results.

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These results are preliminary. Final statistics will be available soon to clients of Gartner’s PC Quarterly Statistics Worldwide by Region program. This program offers a comprehensive and timely picture of the worldwide PC market, allowing product planning, distribution, marketing and sales organizations to keep abreast of key issues and their future implications around the globe. Additional research can be found on Gartner’s Computing Hardware section on Gartner’s Web site at http://www.gartner.com/it/products/research/asset_129157_2395.jsp.

About Gartner
Gartner, Inc. (NYSE: IT) is the world’s leading information technology research and advisory company. Gartner delivers the technology-related insight necessary for its clients to make the right decisions, every day. From CIOs and senior IT leaders in corporations and government agencies, to business leaders in high-tech and telecom enterprises and professional services firms, to technology investors, Gartner is the indispensable partner to 60,000 clients in 10,000 distinct organizations. Through the resources of Gartner Research, Gartner Consulting and Gartner Events, Gartner works with every client to research, analyze and interpret the business of IT within the context of their individual role. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, U.S.A., and has 3,800 associates, including 1,200 research analysts and consultants in 75 countries. For more information, visit http://www.gartner.com.

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