Dataquest: Net Use Boosts PC Growth in LatAm

FORT LAUDERDALE, FLORIDA (08/17/2000) - From Mexico down to Argentina, the desire to connect to the Internet boosted the number of home PCs in Latin America during the second quarter, according to a Dataquest Inc. study released on Thursday.

Latin Americans bought almost 100 percent more PCs for the home in the second quarter of 2000 than in last year's second quarter, an increase driven "by the explosion of the Internet" in the region, Dataquest said in a statement.

The number of Internet users in Latin America is growing at a 41 percent compound annual rate -- the fastest in the world -- and is expected to reach 29.4 million in 2003, according to market researcher International Data Corp.

(IDC), which is owned by International Data Group Inc., the parent company of IDG News Service.

The growth in the home PC market helped boost overall PC shipments in the region by 51 percent to 1.5 million in the second quarter of 2000, according to Dataquest.

Compaq Computer Corp. remained the region's market leader, thanks in part to its ability to meet the demand for home PCs, Dataquest said. Compaq's shipments grew 55 percent to 365,326 units in the second quarter, good for a 24.3 market share.

IBM Corp. and Hewlett-Packard Co. tied for a distant second place in market share, each with 5.2 percent of all shipments. However, HP saw its shipments grow a robust 63.2 percent, while IBM's shipments dropped 11.3 percent in the second quarter.

Acer Inc. came in third with a 4.2 percent market share, but its shipments shrank 6.3 percent. It was followed by fast-growing Mexican assembler Alaska whose shipments rose 52.3 percent and which ended the quarter with a 3.5 percent market share. Dell Computer Corp., a late entry into the Latin American PC market, continued growing strongly with a 36.9 percent increase in shipments and a 3.4 percent market share.

The region's three largest markets, Brazil, Mexico and Argentina, which make up about 75 percent of the region's shipments, all had a good second quarter.

Brazil's shipments rose 93 percent, Mexico's grew 34 percent and Argentina's increased 57 percent.

Dataquest, in San Jose, California, is a unit of Gartner Group Inc. It can be reached at 1-408-468-8000 or at http://www.dataquest.com/. IDC, in Framingham, Massachusetts, can be reached at +1-508-872-8200 or http://www.idc.com/.

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