The Latin American PC Market Returns to Pre-Devaluation Growth Levels and Enjoys a Nearly 50% Growth Rate, IDC Reveals

FRAMINGHAM, MA. – MAY 24, 2000 – The PC market in Latin America achieved its strongest first-quarter growth in five years, increasing nearly 50% from Q1 1999 to Q1 2000, according to IDC. This brings the Latin America PC market back to pre-devaluation growth levels. Total desktop, notebook, and PC server shipments in Latin America reached well over 1.5 million, valued at US$1.92 billion.

Brazil's PC market grew almost 80% from Q1 1999 to Q1 2000 as the PC market recovered from the Real devaluation in Q1 1999, IDC's research revealed. Brazil's economy is now reasonably stable, interest rates are slowly falling, and companies are expanding again. One of the most influential trends in the Brazilian PC market during the first quarter of 2000 was the rising demand for Internet services and Internet-related technology fueled by corporate and home segments.

The Mexican PC market grew an impressive 63% in Q1 2000 compared to the same time last year. IDC research indicates that much of Mexico's PC market growth

in Q1 was related to the continuation of financing options targeting the home and small business segments.

Argentina and Chile also experienced robust growth in the first quarter with 29% and 38% increases, respectively. Colombia was the slowest PC market in the region, but the country is showing a recovery from its ongoing economic crisis. Venezuela's PC market declined in the first quarter, and although the country's economic outlook is still uncertain, IT investments continue in the banking and oil sectors.

"PC shipment growth for Q1 2000 exceeded expectations, led by Brazil and followed by Argentina and Chile," said Alexandra Martinez, senior analyst for

IDC Latin America PC research. "We expect the Latin American PC market to continue to show strong growth for the remainder of 2000 as ISP/PC bundled

promotions and financing options drive demand from the corporate and home segments."

IDC's study reveals that over 1.4 million desktop PCs were shipped to the region during Q1 2000, of which 54% were from local PC vendors. The notebook PC market was exceptionally strong in ROLA (Rest of Latin America), fueled by a partial fulfillment of PCs to the Department of Education in Puerto Rico.

Compaq maintained its leadership position as the number-one PC vendor in Q1 2000, capturing 19% of the region's PC market share. Hewlett-Packard rose to

the second position in Latin America's PC market for the first time, capturing nearly 6% of total shipments. IBM and Acer placed third and fourth by a slim margin to Hewlett-Packard.

IDC's Latin America PC research is available for purchase by contacting Daniel Cardamone at 305-267-2616 or For more information about IDC's Latin America Research programs, please contact Beth Freedman or Lisa Bloom at 508-872-8200.

With a network of six country offices in Latin America and two regional offices — in Silicon Valley, Calif. and Miami — IDC provides full market coverage of PCs, mainframes, Unix systems and workstations, servers, desktop printers, professional services, local area networks, the Internet, telecom, RDBMS software, distribution channels, NT, and IT spending patterns in Argentina, Brazil, Chile, Colombia, Mexico, and Venezuela. IDC also conducts primary research in Peru, Ecuador, Central America, and the Caribbean. International Data Corporation is the leading supplier of IT market information on Latin America.

About IDC

IDC delivers dependable, high-impact insights and advice on the future of ebusiness, the Internet, and technology to help organizations make sound

business decisions. IDC forecasts worldwide markets and trends and analyzes business strategies, technologies, and vendors, using a combination of

rigorous primary research and in-depth competitive analysis. IDC provides global research with local content through more than 500 analysts in 43

countries worldwide. IDC's customers comprise the world's leading IT suppliers, IT organizations, ebusiness companies, and the financial community.

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