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European PC sales rise slightly in second quarter

Western European computer shipments rose 1 percent in the second quarter as British and German sales fell and companies delayed spending on equipment amid a sluggish economy, said IDC, a market research firm.

UK sales dropped, for the first time, by 4.4 percent, and German ones declined 4 percent, IDC said. French sales rose 8.6 percent as businesses resumed spending on computer systems this year and Italian ones rose more than 10 percent.

US PC manufacturers such as Compaq Computer Corp and Dell Computer Corp have reduced sales forecasts or cut jobs as worldwide computer sales fell for the first time in the quarter.

The European market, once seen by them as a shelter from the slowdown, isn't growing as fast as expected as companies use their existing equipment for longer, IDC said.

"2001 will be another year of slow growth in Europe," said Karine Paoli, an IDC analyst.

Confidence of UK manufacturing exporters fell during the second quarter at the fastest rate since October 1998, a Confederation of British Industry report said yesterday, while a report Monday showed business confidence in Germany fell during June to the lowest level in almost five years.

PC sales, which include computers and servers, are still expected to pick up in Western Europe at the end of the year and in 2002, as businesses upgrade existing systems and Microsoft Corp sells its new software Windows XP, IDC said.

Sales of laptops, which had grown by more than 10 percent over the past four years, rose just 6.4 percent even as computer sellers slashed prices, the report said.

Shipments by Compaq, the No. 1 in Europe, Middle East and Africa with a 17 percent market share, rose 5 percent.

That's slower than Dell and Hewlett-Packard Co, the No. 2 and No. 3 in the region, which rose 14 percent and 13 percent respectively.

Dell and Hewlett-Packard, the leader in France, gained ground by reducing prices and selling more laptops, IDC said.

Toshiba Corp lost the leadership in the laptop market in the region to Compaq, now No. 1, and Dell, now No. 2, IDC said.
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