August 8, 2001. Copyright 2001. Graphic News. All rights reserved.

PC sales fall for first time in Europe

LONDON, August 8, Graphic News: Personal computer sales in Western Europe have fallen for the first time since the information technology revolution started, according to a report by research firm Gartner Dataquest.

Experts blamed the fear of recession, use of computers in offices and Internet cafes and market saturation for the decline.

Sales of PCs slumped by four percent over the last quarter to 6.02 million units after consumers opted against buying amid fears of a global economic slowdown.

ÒThe market has hit a brick wall because of the fear of recession, less Internet hype and the delay in new software coming online,Ó said Gartner Dataquest analyst Ranjit Atwal.

ÒFor the first time, people are having to think about why they need to buy a PC and maybe it's not obvious at the moment.Ó

Atwal also cites market saturation as a factor, ending 15 years of unbroken year-over-year sales growth. In Britain there are 22 million PCs in use, with four in ten homes already owning a computer.

Shipments to Germany and Britain -- the two largest markets in the region -- fell by 11.9 percent and 7.3 percent respectively. But sales in France, the third largest market, grew by 7.8 percent, propelled by a strong professional sector.

The Asia-Pacific region is expected to experience nine percent growth in the second quarter of 2001 but in Japan, only five percent growth is expected because of a weak consumer PC market.

Latin America -- which feels the impact of economic events in the United States -- will likely slow to 11 percent growth year-over-year. The U.S. market has experienced its second consecutive quarter of decline, retreating 6.1 percent in April to June. 
/ENDS
Sources: Gartner Dataquest