01.30.2001
4Q00 slowdown in global PC market

• The worldwide PC market grew 9.2% YoY in 4Q00 on shipment of 36.7 million units, according to preliminary data from the International Data Corporation (IDC). This 4Q00 global PC slowdown was caused by weak consumer markets, especially in the US which rose only 0.3% YoY and declined 3.6% QoQ.

• Compaq (U.S.) ranked No.1 in market share at 13%, followed by Dell (U.S.) with 12%. We expect worldwide PC growth this year to be around 10%, mostly boosted by robust demand from Asia and other emerging regions.

• Dataquest preliminary statistics show NB PC shipment growth in 4Q 2000 at 21% YoY, significantly better than the 1.6% YoY growth for desktop PC. IBM (U.S.). held 13.5% market share, followed by Dell at 13% and Toshiba (U.S.) at 12.5%.

• It is estimated that Taiwan NB PC maker shipment increased 30% last year, higher than global growth that peaked at 21%. With global NB PC growth expected to come in at 15%, we expect Taiwan NB PC shipment to grow around 25% as US and Japan branded NB PC makers continue to increase outsourcing in an effort to further reduce costs.

• We believe Quanta (2382 'Guang Da') and Compal (2324 'Ren Bao') to be the major beneficiaries. We remain concerned about deteriorating profitability from a price war, and from weak demand.

MarthaChen@Primasia.com (886 2) 2547-8878