PC market growth falls short of 1997 levels

PC market growth falls short of 1997 levels
Tom Foremski
Sales of X86 microprocessor based desktop PCs will grow by 16 per cent this year, sharply lower than 27 per cent growth in 1997, according to US market research firm Dataquest.
1998 desktop sales are expected to reach $22.7bn this year compared with $19.6bn last year. In 1997, desktop PC sales represented almost 60 per cent of the total x86 microprocessor market, but desktop x86 microprocessors are expected to account for just 39 per cent of the total market by 2002.
“Even with the continued strong demand Dataquest anticipates for all computational market segments, revenue growth in the traditional desktop arena will slow because of component price erosion resulting from system pricing pressures and a shifting system price mix,” said senior Dataquest analyst Nathan Brookwood.

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