Research firm International Data Corp published its preliminary estimates on fourth-quarter PC sales Friday that showed strong year-end growth. A day after rival Dataquest posted its numbers for the quarter, IDC said worldwide shipments rose to 27.3 million units in the quarter, representing 15% growth year-over- year and 23% over the third quarter. Total PC volume for 1998 was just shy of 90 million units, a 12% increase from 1997’s 80.3 million units. The US market remained solid as corporate upgrades were steady and Windows 98, Apple Computer Inc’s iMac, and low- cost Wintel systems fueled consumer demand in the second half of the year. As Dataquest research also noted, the market in Western Europe also boomed based on a vibrant economy, outgrowing any other region for the full year. But strength in those two regions was somewhat offset by the economic slumps in Japan, Asia/Pacific, and Eastern Europe. As for specific vendors, Compaq Computer Corp retained the number-one position in the fourth quarter and the full year, both in the US and worldwide. IDC says the company shook off first-half inventory problems to emerge as a price-aggressive player focused on unit growth, which was fueled throughout the year by strong demand for the company’s consumer lines. Dell Computer Corp was the number-two player for the quarter and the full year in the US, cutting Compaq’s lead over it in half, and moved into the number-three spot worldwide behind Compaq and IBM Corp. IBM struggled for most of the year but managed to finish second worldwide and fourth in the US. IDC notes that the company’s consumer business started showing life towards the end of the year as products finally began hitting market sweet spots. Hewlett-Packard Co, which did well in its consumer division in 1998, but had problems with profitability, held fourth place in the world and fifth in the US. Packard Bell NEC managed to hold onto the number five rank worldwide. However, the company declined in growth and share based on flat growth in its US consumer business. Gateway made big share gains in the US market in 1998, moving from number six in 1997 to number three in 1998 to edge out IBM. The company just missed making it into the top five worldwide.
