SAN JOSE, Calif., November 16, 2001 - Latin America PC shipments totaled 1.8 million units in the third quarter of 2001, a 3.1 percent decline from the same period last year, according to Dataquest Inc., a unit of Gartner, Inc. (NYSE: IT and ITB). This is the first negative growth rate for the PC industry in this region since the fourth quarter of 1997.
The top 3 vendors all experienced a decline in shipments during the third quarter, while Dell and Alaska saw PC shipments increase 52 percent and 26 percent, respectively (see Table 1). Gartner Dataquest analysts said these companies, as well as other local system builders (particularly in Brazil), continue to take away market share from the top 3 vendors.
"Some of the top vendors need to make adjustments in their marketing strategies, understanding the value of retail, not only for the home segment, but small businesses as well," said Luis Anavitarte, vice president and research director for Gartner Dataquest's Latin America group. "There is increasing demand for build-to-order and 'tailored' type of PC service capabilities in the region. Approximately 66 percent of systems sold in the third quarter of 2001 were produced locally versus 56 percent at the same time last year."
Table 1
Latin America PC Vendor Unit Shipment Estimates for Third Quarter 2001 (Units)
| Company |
3Q01 Shipments |
3Q01 MarketShare (%) |
3Q00 Shipments |
3Q00 MarketShare (%) |
Growth (%) |
| Compaq |
292,578 |
16.0 |
415,431 |
22.0 |
-29.6 |
| Hewlett-Packard |
94,974 |
5.2 |
98,102 |
5.2 |
-3.2 |
| IBM |
93,203 |
5.1 |
107,482 |
5.7 |
-13.3 |
| Dell |
82,537 |
4.5 |
54,463 |
2.9 |
51.5 |
| Alaska |
66,061 |
3.6 |
52,362 |
2.8 |
26.2 |
| Others |
1,201,869 |
65.6 |
1,161,264 |
61.5 |
3.5 |
| Total Market |
1,831,222 |
100.0 |
1,889,104 |
100.0 |
-3.1 |
"Dell is slowly moving its price war to the Latin American region. It has succeeded by offering better price points and by providing robust computing performance to have the strongest growth rate among the top-tier vendors," Anavitarte said. "Alaska, positioned in the niche of the clone segment, also excelled because of its extremely low price points and its distribution system through, literally, hundreds of resellers in Mexico."
Both the consumer and professional segments experienced negative growth rates in the quarter. The consumer segment declined 6 percent from the third quarter of 2000, while the professional segment declined 2 percent.
"The consumer segment was impacted by the adverse economic scenarios in some countries. PC purchases were put on hold, but we expect this to be a temporary situation, especially as governments begin to implement more IT and connectivity initiatives for the population," said Anavitarte. "We expect the consumer segment to grow again as Internet penetration into the home market increases. This market will also receive a boost as consumers move to Windows XP Home.
"In the professional market, it's interesting to note that the announcement of Windows XP Professional in the region, precisely when companies were planning their migration to Windows 2000, resulted in some of these firms deciding to re-evaluate their migration plans. This created a sort of transitional period, delaying PC replacements and new purchases."
Venezuela is now the No. 4 PC country in the region, and the country is profiting from its powerful oil industry. Venezuela had the strongest growth rate in Latin America, as shipments totaled 71,843 units, a 48 percent increase from the third quarter of 2000. Brazil continued to lead all countries with shipments of 826,806, a 5 percent increase. PC shipments in Mexico, a NAFTA U.S. partner in good and bad times, declined 16 percent in the third quarter of 2001, but the country continues to be the No. 1 market for notebook shipments in the region.
This information is produced by Gartner Dataquest's Computing Platforms Latin America group. The group provides research on key aspects of the dynamic PC, server and printer hardware markets in Latin America. The focus is on regional and country issues in the top 8 Latin American markets and the Rest of Latin America (ROLA) category, where Central American and Caribbean countries are grouped. To subscribe to this program, please call 800-419-DATA, or 408-468-8009.
Gartner 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.
Gartner, Inc. is a research and advisory firm that helps more than 11,000 clients understand technology and drive business growth. Gartner's divisions consist of Gartner Research, Gartner Consulting, Gartner Measurement and Gartner Events. Founded in 1979, Gartner, Inc. is headquartered in Stamford, Connecticut, and consists of 4,300 associates, including 1,200 research analysts and consultants in more than 90 locations worldwide. The company achieved fiscal 2001 revenue of $952 million. For more information, visit www.gartner.com.
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