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More computers shipped in US in Q4 than expected

The rapid growth curve for computer shipments in last year's third quarter extended into the year's final months, two technology research firms said on Wednesday.

The growth rate in the US beat predictions, countering recent forecasts that spending growth in the broader US technology sector would slow this year, and eventually hurt overseas tech markets.

And Hewlett-Packard Corp maintained its slight edge over Dell Inc as the world's largest computer maker, with little change in market share.

The fourth quarter's increase in computer shipments was roughly in line with the third quarter, when shipments rose at the fastest rate in nearly two years.

Framingham, Massachusetts-based research firm IDC said shipments in October through last month rose 15.5 percent, to 77.4 million units, up from 67 million a year earlier.

Gartner Inc, of Stamford, Connecticut, pegged the growth at a slightly slower 13.1 percent, with 75.9 million units shipped, up from 67.1 million in last year's fourth quarter.

The two firms use slightly different measurements.

In the third quarter, IDC also reported year-over-year growth of 15.5 percent, while Gartner estimated 14.4 percent.

IDC said US computer shipments grew at a stronger-than-expected 8.8 percent in the fourth quarter, while Gartner put the US gain at 7.2 percent.

IDC said US and global gains were driven by growing popularity of mobile computers as well as shifts into new sales channels by Dell and Taiwan-based Acer Inc. Dell has recently begun selling through large retail chains such as Wal-Mart and Staples, in a departure from its direct-to-customer business model.

"Fourth-quarter results show a very healthy PC market," said Loren Loverde, director of IDC's worldwide quarterly PC tracker.

"There is a lot happening with vendors repositioning their channels and going after new markets, while falling prices and portable adoption continue to drive volume," he said.

The US economic downturn has triggered predictions that US technology spending won't grow as fast as it has -- concerns that were heightened on Tuesday after Intel Corp's robust profit and sales figures narrowly missed analyst expectations.

The chip-maker said the PC business appeared to be healthy and blamed its shortfall on lower-than-expected sales of a type of flash memory found in many digital gadgets.

But IDC said it does expect the growth in PC sales to slow.

"Despite fourth-quarter strength, projections for the next couple years anticipate slower growth," Loverde said. "Rising concerns about economic growth are likely to reduce expectations further, although we're still likely to see double-digit growth through 2008 and probably 2009."

IDC reported that 269 million PCs shipped last year, for annual growth of 14.3 percent.

Gartner counted 271.2 million units shipped last year, a 13.4 percent increase.

The year "showed a clear indication of the worldwide PC market landscape: strong growth in emerging regions such as Asia/Pacific and slower growth in markets such as the United States," Gartner analyst Mikako Kitagawa said.
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