PC Market Growth Dips To 9.7% As Demand In Europe Slows, According to IDC.

FRAMINGHAM, Mass. -- The worldwide PC market continued to grow at a healthy pace in the second quarter of 2006, although slow growth in Europe limited worldwide shipments to an increase of 9.7% year on year, according to IDC's Worldwide Quarterly PC Tracker.

While overall growth remained strong, there were some unexpected twists in regional performance. Inventory from the first quarter and distractions from the World Cup significantly cut into European growth with shipments increasing by roughly 7% year on year compared to twice that the prior quarter and a forecast of 12%. Meanwhile, shipments in the United States increased by 6.7% on aggressive competition among the market leaders following slower growth the prior two quarters. Latin America and Asia/Pacific excluding Japan (APeJ) also saw strong growth in the quarter, while growth in Japan was slower than expected.

Acer continued to gain share worldwide while Fujitsu Siemens struggled in its core markets. Dell improved on its first quarter performance, growing U.S. shipments roughly in line with the market and gaining share worldwide. HP had another strong quarter in the United States, but the slow market in Europe constrained overall growth to 13% from more than 23% the prior quarter. Gateway and Apple also performed well with growth of roughly 16% in the U.S.

"We continue to see aggressive competition as the market transitions to a new phase," said Loren Loverde, director of…