PC Demand Expected to Grow in First Quarter LOS ANGELES, March 7

Unit volume in the worldwide PC market in the first quarter of2000 is expected to grow 20 percent year over year, according toforecast data released Tuesday by U.S. market research firmInternational Data Corporation (IDC). But with the traditionallyslower first quarter in full swing, IDC said, PC shipments areexpected to decline 9 percent from the fourth quarter 1999. "WithY2K fears largely over and the introduction of Microsoft Windows2000," IDC said, "businesses will start picking up the pace ofupgrades." The research firm expects the commercial marketto showmore robust growth this year than last, starting with a pickup indemand this quarter. Asia-Pacific and Japan will lead the way inPC sales for the quarter with 32 percent growth each over the firstquarter last year, according to IDC's forecast. Both Asia-Pacificand Japan will continue to benefit from strong consumer demand asprice points decline and interest in new desktop designs increase;consumer growth will top 68 percent and 45 percent in the regionrespectively. In the United States, IDC expects first quartergrowth to reach20 percent. Western Europe's growth is pegged at 10.9percent. According to IDC, the key to vendor growth this quarteris related to the strategic alignment with growing consumer andsmallbusiness segments. In addition, positioning in the U.S. andAsia-Pacific markets will be especially important. Finally, IDCfound solid Internet strategies and the ability to deliver portablePCs in volume will also be keys to growth. There were a total of113 million PC shipments worldwide in 1999, according to IDC data.Compaq and Dell were on top of all vendors, respectively capturing13.9 percent and 10.5 percent worldwide market share.