Western European shipments of personal computers slumped 12 percent in the third quarter as an economic slowdown that began in the US and UK spread to continental Europe, according to market research firm IDC.
The Sept. 11 terrorist attacks in the US exacerbated the economic slowdown, IDC said. Western European shipments fell less than in the US, where shipments dropped by 19 percent.
The attacks will "certainly accelerate downward trends," said Karine Paoli, an IDC analyst. "Worsening economic conditions will add to an already-slowing PC market and affect the prospects of a larger rebound." Large European companies had earlier this year started spending again on computer-related projects after freezing budgets ahead of the year 2000 date change. They were then hit by an economic slowdown. Compaq Computer Corp three weeks ago said third-quarter sales in Europe were "weak" and Gateway Inc is pulling out of the region.
Shipments by Houston-based Compaq, the No. 1 seller in Europe, Middle East and Africa, fell 15.7 percent, hurt by increased competition and its planned acquisition by Hewlett Packard Co, IDC said. Compaq's market share slid to 14.5 percent from 15.5 percent, as it lost ground to Dell Computer Corp, the No. 2 in Europe, Middle East and Africa.
Austin, Texas-based Dell was the lone computer maker of the top five sellers to record a rise. Dell's shipments in Europe, Middle East and Africa rose 6.6 percent thanks to price cuts and direct sales.
Shipments by No. 3 Fujitsu-Siemens slumped 23 percent as it faces increasing competition in Germany, its largest market. Shipments by H-P fell 2.7 percent.
Sales of PCs in the UK slumped 15.5 percent as businesses delayed or canceled computer-related projects. In Germany and France, sales fell by about 14 percent and 18 percent respectively. Italy was the only large market of Western Europe to rise, by 11.5 percent.
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