Pitra Daily News

Large Sized Enterprises in Most Industries Expect
Single-Digit Increase in IT Spending
STAMFORD, Conn., January 4, 2006 - Following a period of cost cutting
and reactive spending, organizations with more than $1 billion in revenue will
be cautious when making their IT spending decisions in 2006, according to
Gartner Consulting’s Worldwide IT Benchmark Service.

In 2006, the most significant difference in spending will be in the consumer
products industry, with IT spending increasing 7.9 percent in 2006, up from
flat growth in 2005 (see Table 1). Although IT spending in the electronics and
insurance industries is expected to be 7.8 percent and 6.5 percent,
respectively, this actually represents a decline from 2005, when IT spending in
those industries increased 8.3 percent and 7.7 percent respectively. The
professional services industry will see the biggest decline in IT spending in 2006,
as spending is expected to decline 1.7 percent, down from 10.1 percent in 2005.

Gartner’s Worldwide IT Benchmark Service and The Worldwide IT Benchmark report
includes five volumes of comprehensive IT spending and performance data across
20 industries. This report highlights comprehensive IT spending plans of more
than 1,500 companies with more than $1 billion in revenue, combined with
historical spending and performance data on more than 10,000 companies
worldwide. This allows companies to look at key cost and performance indicators
by IT domain to gauge and manage organizational effectiveness and performance
optimization.

"While we are seeing all organizations moving away from reactive IT
spending and toward improved agility and long-term strategic support at a macro
scale, there are a number of different trends that are specific to each
industry, geography and organization size," said Howard Rubin, an
associate with Gartner Consulting.

"No single measure or investment can help an organization support the
growth and direction of its business, but organizations that develop ongoing
strategic performance management programs that allow them to manage their
performance and track their competitive environment will be first in managing
business growth, strategy and operations effectively," said Mr. Rubin.

Table 1
IT Spending Change by Industry for Organizations With More Than $1 Billion in
Revenue, 2005 and 2006

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Industry	Spending Change (%) - 2004-2005	Spending Change (%) - 2005-2006
Consumer Products	0.0	7.9
Electronics	8.3	7.8
Insurance	7.7	6.5
Chemicals	-0.2	5.1
Construction and Engineering	0.0	4.9
Information Technology	2.3	4.7
Healthcare	8.9	4.6
Education	6.0	4.1
Energy	-2.9	3.9
Pharmaceuticals	5.6	3.3
Utilities	-0.6	3.1
Banking and Financial Services	7.1	3.1
Media	2.8	2.9
Government	5.0	2.4
Food/Beverage Processing	6.0	1.3
Manufacturing	-1.3	1.2
Telecommunications	0.2	0.0
Metals/Natural Resources	0.8	0.0
Hospitality and Travel	0.0	0.0
Transportation	-1.4	-0.2
Professional Services	10.1	-1.7
Retail	-0.1	-4.9

Note: Represents
organizations with greater than $1 billion annual revenue.
Source: Gartner Consulting (December 2005)

About the Worldwide IT Benchmark Research
Gartner’s Worldwide IT Benchmark Service is a real-time, comprehensive data
resource designed to provide key cost and performance indicators by IT domain
and focused high-level comparisons of companies. Gartner’s Worldwide IT
Benchmark Service surveys companies from more than 30 countries in more than 20
industry sectors. Please click here
for more information on Worldwide IT Benchmark Research.

Worldwide PC Shipments Increased 15 Percent in 2005

STAMFORD, Conn., January 18, 2006 - For the first time, the Europe,
Middle East and Africa (EMEA) region surpassed the United States as the largest
PC market, based on 2005 shipments, according to preliminary statistics by
Gartner, Inc. PC shipments in EMEA totaled 72.6 million units in 2005, while PC
shipments in the U.S. reached 67.2 million units (see Table 2).

"The EMEA region finished the year with a strong fourth quarter in 2005,
as more than 20 million units were shipped, a 17.2 percent increase from the
fourth quarter of 2004 ," said Ranjit Atwal, senior analyst for Gartner’s
Computing Platform Group in EMEA. "The consumer market did well in the
region, especially in the mobile PC market where significant promotions in all
countries led to exceptional demand."

Table 1
Preliminary EMEA PC Unit Shipment Estimates for 2005 (Thousands of Units)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company	2005 Shipments	2005 Market Share (%)	2004 Shipments	2004 Market Share (%)	2005-2004 Growth (%)
Hewlett-Packard	11,536	15.9	9,966	16.1	15.7
Dell Inc.	8,453	11.6	6,584	10.6	28.4
Acer	6,523	9.0	4,359	7.0	49.7
Fujitsu/Fujitsu Siemens	5,383	7.4	4,230	6.8	27.3
NEC	2,816	3.9	1,904	3.1	47.9
Others	37,937	52.2	34,971	56.4	8.5
Total	72,649	100.00	62,014	100.00	17.1

Note: Data includes desk-based PCs, mobile PCs and X32/64
servers.
Source: Gartner Dataquest (January 2006)

In EMEA, the professional market started slowly, but gained momentum towards
the end of the quarter. Whilst growth seems to be driven by increased demand,
concerns over inventory continue to exist. With the exception of
Hewlett-Packard, all the vendors increased their average days of inventory over
2004, rising for some of them by more than a third.

In the fourth quarter of 2005, Hewlett-Packard became the first PC vendor to
ship over three million PCs in a single quarter. Lenovo suffered from their
absence in the consumer market, combined with the failure of positioning their
products competitively in the professional desk-based market. This resulted in
a decline of seven percent in the fourth quarter of 2005. By contrast, NEC
produced a second consecutive strong quarter with continued growth in
distribution channels, as well as profiting from shelf space attained last
quarter. As a result, NEC displaced Lenovo from their fifth position.

Across many regions in 2005, the mobile PC market showed high growth.
"Mobile growth came to some extent at the expense of desk-based PCs,"
said Charles Smulders, vice president of Gartner’s Computing Platforms
Worldwide Group. "Emerging regions had steady desk-based PC growth,
however it could not offset the very weak desk-based PC growth in the mature
regions."

Table 2
Preliminary Worldwide PC Unit Shipment Estimates for 2005 (Thousands of Units)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

All Geography	2005 Shipments	2005 Market Share (%)	004 Shipments	2004 Market Share (%)	2005-2004 Growth (%)
EMEA	72,649	33.2	62,014	32.7	17.1
United     States	67,153	30.7	62,443	32.9	7.5
Asia/Pacific	42,777	19.6	33,947	17.9	26.0
Latin America	14,711	6.7	11,671	6.2	26.0
Japan	14,662	6.7	13,635	7.2	7.5
Canada	6,583	3.0	5,829	3.1	12.9
Total	218,533	100.0	189,539	100.0	15.3

Note: Data includes desk-based PCs, mobile PCs and X86
servers.
Source: Gartner Dataquest (January 2006)

While worldwide PC shipments increased 15.3 percent in 2005, Dell continued to
grow more than the industry average, as its worldwide PC shipments grew 18.6
percent in 2005 (see Table 3). However, Dell’s worldwide growth rate started to
slow down in the second half of 2005. During the fourth quarter, Dell’s growth
slightly exceeded the worldwide average, and it gained more from overseas
markets. Hewlett-Packard also did well in non-U.S. markets in the fourth
quarter, but it performed a little below the U.S. average.

Table 3
Preliminary Worldwide PC Vendor Unit Shipment Estimates for 2005 (Thousands of
Units)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company	2005 Shipments	2005 Market Share (%)	2004 Shipments	2004 Market Share (%)	2005-2004 Growth (%)
Dell	36,764	16.8	31,009	16.4	18.6
Hewlett-Packard	31,792	14.5	27,623	14.6	15.1
Lenovo	15,054	6.9	12,937	6.8	16.4
Acer	10,154	4.6	6,425	3.4	58.1
Fujitsu/Fujitsu Siemens	8,326	3.8	7,144	3.8	16.5
Others	116,443	53.3	104,401	55.1	11.5
Total	218,533	100.00	189,539	100.00	15.3

Note: Data includes desk-based PCs, mobile PCs and X86
servers.
Source: Gartner Dataquest (January 2006)

In the United States, fourth quarter results confirmed that the U.S. professional market replacement cycle has peaked. "Both small and midsize
business (SMB) and enterprise markets showed softness in demand," said
Mika Kitagawa, principal analyst in Gartner’s Computing Platforms Worldwide
Group. "This slow down was mainly driven by poor desk-based PC sales.
Professional mobile PC growth was very steady, especially in the SMB
market."In the Asia/Pacific region, China,
South Korea and India continued
to perform well in the fourth quarter.

China had strong demand in the
professional segment due to fiscal year-end spending, while in the consumer
market, leading vendors had some success in their winter promotion programs. In
India,
PC sales are expanding beyond the major cities.

In Latin America, desk-based PC shipments grew
20 percent in the fourth quarter, while notebook shipments grew 51 percent. The
consumer market grew by 25 percent, while consumer notebooks surpassed 112
percent growth.

PC shipments in Japan
appear modest for the fourth quarter, however many of the new PCs targeted for
the winter bonus shopping season had been shipped in September instead of the
fourth quarter. As more vendors started shipping their mainstream models in
September, this limited fourth quarter shipment growth to the high single
digits, while the third quarter posted 18.4 percent growth.

These results are preliminary. Final statistics will be available soon to
clients of Gartner’s PC Quarterly Statistics Worldwide by Region program. This
program offers a comprehensive and timely picture of the worldwide PC market,
allowing product planning, distribution, marketing and sales organizations to
keep abreast of key issues and their future implications around the globe. To
subscribe to this program, please call 408-468-8000. Additional research can be
found on Gartner’s Computing
Hardware section on Gartner’s Web site.

Press Contact:

For further information or to speak with Gartner analysts please contact Bite
Communications on Tel: + 44 208 834 3508 or email: gartner@bitepr.com.

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