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CORRECTING and REPLACING PC Market Continues Rapid Growth In Fourth Quarter of 2005 As Annual Shipments Reach New Highs, According to IDC

Posted on: Thursday, 19 January 2006, 18:00 CST

In the third table titled, "Top 5 Vendors, Worldwide PC Shipments, 2005 Annual (Preliminary)", the last line for "Lenovo (Merged)", figures have been corrected for "2005 Shipments", "2005 Market Share", and "Growth 2005/2004", as stated below.

The corrected release reads:

PC MARKET CONTINUES RAPID GROWTH IN FOURTH QUARTER OF 2005 AS ANNUAL SHIPMENTS REACH NEW HIGHS, ACCORDING TO IDC

The PC market continued to expand at an impressive rate in the fourth quarter of 2005 with worldwide shipments increasing by more than 17% year on year, according to IDC's Worldwide Quarterly PC Tracker. Although shipments in North America were incrementally behind forecasts, international markets were able to pick up the slack to produce the third consecutive quarter of growth greater than 17%. Portable PC demand also remained a major driver that should contribute to revenue as well as shipment growth. Fourth quarter shipments of 61.1 million were up 17.1% boosting full year shipments to 208.6 million with growth of 16.4%. The figures were slightly ahead of November projections of 15.1% growth in Q4 and 15.8% for the year.

"Despite market concern for consumer spending, fourth quarter demand remained strong with most regions coming in ahead of expectations," said Loren Loverde, director of IDC's Worldwide Quarterly PC Tracker. "Although growth has declined slightly from the second and third quarters, the market's resilience in the face of rising interest rates, high fuel prices, a weaker Euro, and other potential inhibitors puts the market in a great position to start 2006."

"The market continues a fundamental shift toward mobile computing that is contributing significantly to top-line growth," said David Daoud, research manager Personal Computing and PC Tracker Programs "Portable PCs are expected to capture a record 38% of Client PC shipments in the United States this quarter, while incentive strategies for Desktops based on low prices alone may have reached their limits. Still, there were ample opportunities in the fourth quarter for vendors who offered desktops as home digital appliances, a trend we anticipate could reignite the desktop market in 2006 and 2007 with the launch of Microsoft Vista, Intel's Viiv, and PC vendors' expected endorsement of these initiatives."

Regional Outlook

-- United States - Demand for Portable PCs continued to drive

solid growth in the U.S. market during the fourth quarter.

Consumer demand remained strong despite competition from other

electronics and concerns that hurricane damage as well as

rising interest rates and fuel prices would reduce spending.

In fact, demand for desktops was relatively slow as buyers

preferred portable systems despite their higher cost.

-- EMEA - The EMEA market turned in another outstanding

performance during the final quarter of the year with strong

retail sales and a particularly strong December. Portable

adoption remained a key factor throughout the region while

business investment also contributed significantly to growth

within CEMA.

-- Japan - Persistent consumer demand helped sustain momentum in

the Japanese market. Overall growth declined slightly from the

double-digit rates in the second and third quarters as

expected but remained in high single-digits.

-- Asia/Pacific (excluding Japan) - PC shipments in the APeJ

region continued to expand at a rapid pace in the fourth

quarter. A slowdown in commercial growth in India was only a

small blemish on the region's performance as steady growth in

China and South Korea as well as strong portable adoption in

many countries highlighted solid demand throughout the region.

Vendor Highlights

-- Dell - Dell remained the top PC vendor and boosted its share

of shipments to 17.2% from 16.8% a year ago with year-on-year

growth of more than 20%. The company had strong growth across

regions and form factors with particularly rapid growth in

EMEA, Asia/Pacific, and Latin America driving overall

international growth above 37% year on year and growth of more

than 50% in worldwide Portable PC shipments.

-- HP - HP also had a solid quarter with 15.7% of worldwide

shipments and growth of 15.8% year on year. Growth in EMEA

accelerated to almost 25% in 4Q05 from single-digits in the

first quarter while operations in Asia/Pacific (excluding

Japan) continued to expand at more than 30% year on year.

-- Lenovo - Lenovo continues to gain momentum as it tunes its

operations following the acquisition of IBM's PC business.

Worldwide shipment growth stabilized at nearly 13% vs.

combined Lenovo and IBM PC shipments in the fourth quarter

with growth of 30% in Asia/Pacific (excluding Japan) boosting

the region to roughly 55% of shipments.

-- Acer - Acer maintained growth of more than 50% for the third

consecutive quarter with strong international gains and a

growing presence in the Americas. Nevertheless, growth

declined from prior quarters as competitors offered

competitively priced systems.

-- Fujitsu/Fujitsu Siemens - Another strong quarter in EMEA and

improving growth in Japan helped build momentum for Fujitsu

Seimens. The fourth quarter marked the fifth consecutive

period that the company has improved year-on-year growth.

-- Gateway - Gateway delivered a third quarter of healthy growth

with gains in the United States helping worldwide volume keep

pace with market growth. Although the 16% year-on-year

increase declined notably from the high 20% range of recent

quarters, this may reflect channel inventory management with

new distribution partners.

-- Apple - Apple continued to grow in double-digits, but growth

slowed notably from recent quarters. The buzz over it's media

business continues to generate significant attention for Apple

platforms and while the recent announcement of Intel based

systems should contribute to interest in Apple's systems, they

may have contributed to slower growth in the fourth quarter.

Top 5 Vendors, Worldwide PC Shipments, Fourth Quarter 2005 (Preliminary) (Units Shipments are in thousands) 4Q05 4Q05 Market 4Q04 Market Growth Rank Vendor Shipments Share Shipments Share 2005/2004 ---------------------------------------------------------------------- 1 Dell 10,539 17.2% 8,774 16.8% 20.1% 2 HP 9,564 15.7% 8,257 15.8% 15.8% 3 Lenovo 4,414 7.2% 1,257 2.4% 251.3% 4 Acer 3,302 5.4% 2,165 4.1% 52.5% 5 Fujitsu/ Fujitsu Siemens 2,535 4.1% 2,058 3.9% 23.2% Others 30,745 50.3% 29,675 56.9% 3.6% All Vendors 61,100 100.0% 52,186 100.0% 17.1% 3 Lenovo (Merged) 4,414 7.2% 3,919 7.5% 12.6%

Notes:

-- Shipments include shipments to distribution channels or end

users. OEM sales are counted under the vendor/brand under

which they are sold.

-- PCs include Desktop, Notebook, Ultra Portable, and x86

Servers.

-- PCs do not include handhelds. Data for all vendors are

reported for calendar periods.

-- Data for Lenovo includes shipments for IBM PCD (including

Desktop and Portable PCs and excluding x86 Servers and

Personal Workstations) starting in 2Q05, and only Lenovo data

for prior quarters. This reflects the legal status of the

companies, which merged during the second quarter of 2005.

Source: IDC, January 18, 2006 Top 5 Vendors, U.S. PC Shipments, Fourth Quarter 2005 (Preliminary) (Units Shipments are in thousands) 4Q05 4Q05 Market 4Q04 Market Growth Rank Vendor Shipments Share Shipments Share 2005/2004 ---------------------------------------------------------------------- 1 Dell 5,741 32.9% 5,287 32.9% 8.6% 2 HP 3,545 20.3% 3,323 20.7% 6.7% 3 Gateway (a) 1,184 6.8% 1,025 6.4% 15.5% 4 Lenovo 711 4.1% 0 0.0% N/A 5 Toshiba (b) 635 3.6% 577 3.6% 9.9% Others 5,639 32.3% 5,845 36.4% -3.5% All Vendors 17,455 100.0% 16,057 100.0% 8.7% 4 Lenovo (Merged) 711 4.1% 684 4.3% 3.9%

Notes:

-- (a) IDC estimates prior to Gateway's financial earnings

report.

-- (b) Toshiba U.S. shipments based on IDC estimates.

-- Shipments include shipments to distribution channels or end

users. OEM sales are counted under the vendor/brand under

which they are sold.

-- PCs include Desktop, Notebook, Ultra Portable, and x86

Servers.

-- PCs do not include handhelds. Data for all vendors are

reported for calendar periods.

-- Data for Lenovo includes shipments for IBM PCD (including

Desktop and Portable PCs and excluding x86 Servers and

Personal Workstations) starting in Q2 2005, and only Lenovo

data for prior quarters. This reflects the legal status of the

companies, which merged during the second quarter of 2005.

Source: IDC, January 18, 2006 Top 5 Vendors, Worldwide PC Shipments, 2005 Annual (Preliminary) (Units Shipments are in thousands) 2005 2005 Market 2004 Market Growth Rank Vendor Shipments Share Shipments Share 2005/2004 ---------------------------------------------------------------------- 1 Dell 37,732 18.1% 31,769 17.7% 18.8% 2 HP 32,525 15.6% 28,101 15.7% 15.7% 3 Lenovo 12,995 6.2% 4,183 2.3% 210.7% 4 Acer 9,803 4.7% 6,368 3.6% 53.9% 5 Fujitsu/ Fujitsu Siemens 8,489 4.1% 7,187 4.0% 18.1% Others 107,041 51.3% 101,573 56.7% 5.4% All Vendors 208,586 100.0% 179,181 100.0% 16.4% 3 Lenovo (Merged) 15,106 7.2% 13,690 7.6% +10.3%

Notes:

-- Shipments include shipments to distribution channels or end

users. OEM sales are counted under the vendor/brand under

which they are sold.

-- PCs include Desktop, Notebook, Ultra Portable, and x86

Servers.

-- PCs do not include handhelds. Data for all vendors are

reported for calendar periods.

-- Data for Lenovo includes shipments for IBM PCD (including

Desktop and Portable PCs and excluding x86 Servers and

Personal Workstations) starting in 2Q05, and only Lenovo data

for prior quarters. This reflects the legal status of the

companies, which merged during the second quarter of 2005.

Source: IDC, January 18, 2006 Top 5 Vendors, U.S. PC Shipments, 2005 Annual (Preliminary) (Units Shipments are in thousands) 2005 2005 Market 2004 Market Growth Rank Vendor Shipments Share Shipments Share 2005/2004 ---------------------------------------------------------------------- 1 Dell 21,466 33.5% 19,296 33.1% 11.2% 2 HP 12,452 19.4% 11,602 19.9% 7.3% 3 Gateway (a) 3,924 6.1% 2,950 5.1% 33.0% 4 Apple 2,554 4.0% 1,935 3.3% 32.0% 5 Toshiba (b) 2,260 3.5% 1,862 3.2% 21.4% 6 Lenovo 2,075 3.2% 0 0.0% N/A Others 19,357 30.2% 20,640 35.4% -6.2% All Vendors 64,089 100.0% 58,285 100.0% 10.0% 3 Gateway (Merged) (a) 3,924 6.1% 3,608 6.2% 8.8% 4 Lenovo (Merged) 2,630 4.1% 2,597 4.5% 1.3%

Notes:

-- (a) IDC estimates prior to Gateway's financial earnings

report.

-- (b) Toshiba U.S. shipments based on IDC estimates.

-- Shipments include shipments to distribution channels or end

users. OEM sales are counted under the vendor/brand under

which they are sold.

-- PCs include Desktop, Notebook, Ultra Portable, and x86

Servers.

-- PCs do not include handhelds. Data for all vendors are

reported for calendar periods.

-- Data for Lenovo includes shipments for IBM PCD (including

Desktop and Portable PCs and excluding x86 Servers and

Personal Workstations) starting in Q2 2005, and only Lenovo

data for prior quarters. This reflects the legal status of the

companies, which merged during the second quarter of 2005.

Source: IDC, January 18, 2006

IDC's Worldwide Quarterly PC Tracker gathers PC market data in 55 countries by vendor, form factor, brand, processor brand and speed, sales channel and user segment. The research includes historical and forecast trend analysis as well as price band and installed base data.

For more information, or to subscribe to IDC's Worldwide Quarterly PC Tracker, please contact Kathy Nagamine at 650-350-6423 or knagamine@idc.com. You may also contact IDC's sales hotline at 508-988-7988 or email sales@idc.com.

About IDC

IDC is the premier global market intelligence and advisory firm in the information technology and telecommunications industries. We analyze and predict technology trends so that our clients can make strategic, fact-based decisions on IT purchases and business strategy. Over 700 IDC analysts in 50 countries provide local expertise and insights on technology markets. Business executives and IT managers have relied for 40 years on our advice to make decisions that contribute to the success of their organizations.

IDC is a division of IDG, the world's leading technology media, research, and events company. Additional information can be found at www.idc.com.

All product and company names may be trademarks or registered trademarks of their respective holders.

Source: Business Wire

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