Local PC sales rise 25.7%

The latest figures from market research firm IDC show New Zealand's PC market grew 25.7% in the first quarter this year, compared to Q1 1998. Compaq leads the market followed by Hewlett-Packard then Dell. Compaq shipped 15,500 units, or 20.6% of the market.

The latest figures from market research firm IDC show New Zealand's PC market grew 25.7% in the first quarter this year, compared to Q1 1998.

Compaq leads the market followed by Hewlett-Packard then Dell. Compaq shipped 15,500 units, or 20.6% of the market.

Compaq New Zealand general manager Robin Paterson says there could well be more surprises this year due to the unpredictability that the year 2000 is bringing. He says signals being received about Y2K are still mixed. He says there was a lot of Y2K business, but a lot of it was corporate business on a three to four year replacement cycle, which would have happened anyway.

Hewlett-Packard New Zealand marketing manager Eric Chaniot says most of HP's focus last year's was on corporates, but HP is now also focusing strongly on the SME market.

In Q2 Chaniot expects the level of corporate business to stay the same or increase. "Most have been working on Y2K for years. They will continue to buy because everything is ready for Y2K."

Dell general manager Ross Allan says Dell had a good first quarter and is pleased to be in third place. He says the second quarter also seems to be extremely strong.

"There is probably some stuff happening now that would otherwise happen toward the end of the year."

IDC NZ manager Dinesh Kumar says he hasn't seen such growth for three years. He says 75,000 units were shipped compared to 60,000 units in Q1, 1998.

Kumar attributes the strong sales to Y2K upgrades, falling PC prices and growth in the small to medium-sized business market. "There wasn't anything unusual; there were just lots of sales," says Kumar.

However, Q2 sales are expected to be not as strong, reversing the usual trend of a better second than first quarter.

"Q2 is considered to be a corporate and government quarter but so far there have not been many sales in those two sectors. I have not seen any large tenders in the government sector," he says.

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