Slow Demand Hampers Shipment of PCs

Personal computer shipments are expected to rise about 9% worldwide in the second quarter, instead of the expected 10%, as slow demand in Asia and excess inventory hamper new shipments, according to market researcher International Data Corp. of Framingham, Mass. IDC also cut its 1998 PC shipment growth forecast to 12% from 13%. The inventory problem, led by No. 1 PC maker Compaq Computer Corp., means there will be more steep price slashing in the personal computer industry, IDC said. IDC said the two companies that will see the biggest gains in shipments are Dell Computer Corp. and Hewlett-Packard Co., which have been the fastest-growing PC makers in recent quarters. Compaq’s shipments of portable and home PC systems will increase, though that will be offset by weakened production in corporate desktop computers and servers, the powerful machines that link PCs in networks.