Gartner Dataquest Says European PC Market to Return to Healthier Growth in 2001 With a 15 Percent Increase
Egham, United Kingdom, November 17, 2000 - The European personal computer market is on pace to have shipments reach 35.4 million units in 2000, an increase of 10 percent over 1999 totals, according to Dataquest Inc., a unit of Gartner Group, Inc. (NYSE: IT and ITB). The PC market in Europe will experience stronger growth in 2001, as Gartner Dataquest analysts predict growth of 14.6 percent and shipments of more than 40 million units.
"While 2000 has been dampened by a combination of economic factors, uncertainty over the implementation of Windows 2000 and comparisons with a very strong year in 1999, we will see renewed growth in 2001," said Jon Hardcastle, industry analyst with Gartner Dataquest's Computer Systems and Peripherals program." This will be fuelled by a predicted rise in the number of replacement PCs in the professional sector. The PC is already pretty much ubiquitous in most professional organizations, and so the relative importance of replacement PC purchases will increase during 2001. The market had a strong year in 1998, and we expect that in 2001, three years later, this will translate into a large number of three-year-old PCs reaching their 'use by date'."
Gartner Dataquest expects the PC market to see a compound annual growth rate of 10.7 percent through 2004 (see Table 1), with PC shipments in Europe on pace to exceed 53 million units by 2004. This compares with a compound growth of 20.6 percent in the two previous years and illustrates that even though the market is recovering, it is not returning to the incredible growth seen just two years ago.
Table 1
European Personal Computer Shipment Growth Estimates (Percent)
1999 Growth 2000 Growth 2001 Growth 2002 Growth 2003 Growth 2004 Growth
Professional Segment 13.1 6.1 13.7 11.4 11.2 9.7
Private Segment 32.7 20.3 16.5 7.5 7.0 6.7
Deskbased PC 15.8 5.9 11.5 7.8 8.2 7.1
Mobile PC 32.4 34.5 28.9 20.1 16.4 14.5
Total Market 18.0 10.1 14.6 10.2 10.0 8.8
Source: Gartner Dataquest (November 2000)
 
One of the bright spots in a relatively poor year to date has been the strong performance of mobile PCs. However, Gartner Dataquest cautions that although strong growth will continue in the short term, growth rates of more than 30 percent is only possible when there is a small base. As this market starts to mature, growth rates will slow, falling from almost 35 percent growth in 2000 to 15 percent in 2004.
Gartner Dataquest also predicts that Eastern Europe will lead Western Europe with a compound growth rate of nearly 15 percent compared to 10 percent in Western Europe. "Eastern Europe presents a high-growth opportunity," said Mr. Hardcastle. "However, greater exposure to economic changes and high price sensitivity mean that caution must be exercised."
Additional information on the European PC market is available in Gartner Dataquest's PC Strategies Europe program. To subscribe to this program, please call 800-419-DATA, or 408-468-8009. More information about Dataquest's programs, descriptions of recent research reports and full text of press releases can be found on the Internet at http://www.dataquest.com. 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 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.
About Gartner
Gartner provides unrivaled thought leadership for more than 10,000 organizations, helping clients to achieve their business objectives through the intelligent and efficient use of technology. Additionally, Gartner helps technology companies identify and maximize technology market opportunities. Gartner's technology content and strong brand reach IT professionals globally through Gartner Research, its research and advisory unit; Gartner Services, its custom consulting unit; Gartner Events, including Gartner's renowned Symposia; and, at www.gartner.com. Gartner subsidiary TechRepublic, Inc. (www.techrepublic.com) is the leading online destination developed exclusively for IT professionals by IT professionals. Gartner, founded in 1979 and headquartered in Stamford, Connecticut, achieved fiscal 2000 revenue of $859 million. Gartner's 4,300 associates, including 1,400 research analysts and consultants, are in more than 80 locations worldwide. For more information about Gartner's industry-leading products and services, please visit us on the Web at www.gartner.com.
CONTACT:
Tom McCall
408-468-8312
tom.mccall@gartner.com
Hanne Main
+ 44-1784-487-331
hanne.main@gartner.com