Sellers look for better New Year

By PETER GRIFFIN

Compaq was the leading New Zealand PC vendor last year, but disappointing fourth-quarter results meant the computer industry as a whole was happy to start a new year.

Research company International Data Corporation (IDC) said manufacturers sold 81,737 PCs in the fourth quarter, down 11.4 per cent on record third-quarter figures.

Vendors shipped 332,893 units last year, up 10.3 per cent from 1999.

But the pre-Christmas period, usually a busy time for PC manufacturers, was slower than usual, which sapped growth figures worldwide.

IDC analyst Dinesh Kumar said buying activity slowed substantially during the quarter, but growth for the year overall was respectable at 16 per cent.

"The home shipments didn't happen to the same magnitude that they did in the fourth quarter of 1999, but we see sustained growth in the industry in the current quarter.

"The Pentium Four will boost things. When something new comes out, that always drives demand."

Compaq maintained its top spot, shipping more than 17,500 PCs, well ahead of nearest-ranked rivals Hewlett-Packard (9000), Dell, IBM and Toshiba.

Dell overtook IBM to claim third place for the year.

Locally manufactured PCs featured more prominently in the figures, accounting for 35 per cent of the market in the fourth quarter, up from 30.2 per cent the previous three months.

Dell general manager Ross Allan attributed the company's growth to its direct sales model and success against competitors in the Government and corporate sectors.

"Of the 14 new customers we added in the corporate and Government space accounts, we took 11 from Compaq," he said

IDC forecasts annual growth rates to 2004 to be strongest in the Asia-Pacific regions, and lowest in the saturated US and Japan markets, where PC vendors used to direct merchandising are having to cultivate channels to maintain market share.

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