Charles Smulders Mobile Quotations

Mobile demand remains strong worldwide, but in the U.S. desktop consumer market demand increased in response to renewed price competition.

Mobile growth came to some extent at the expense of desk-based PCs. Emerging regions had steady desk-based PC growth, however it could not offset the very weak desk-based PC growth in the mature regions.

In the first quarter of 2006, emerging markets and consumer demand in the mature regions were the major growth engines on a worldwide basis. Mobile demand remains strong worldwide, but in the U.S. desktop consumer market demand increased in response to renewed price competition.

Strong market growth continued to be driven by lower prices and mobility in the third quarter. These factors sped up new PC adoption and replacement activities. Overall market growth exceeded expectations, with home demand for mobile being particularly strong.

Notebook computers now offer much of the functionality of desktops, and consumers and businesses alike are spending the extra for the added benefit of mobility. In that sense, mobile growth is coming at the expense of desk-based PCs to some extent.

The industry did better than expected, due in large part to price cuts by vendors and demand for mobile PCs. Mobile growth came to some extent at the expense of desk-based PCs.