Charles Smulders Demand Quotations

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

Emerging markets and consumer demand in the mature regions were the major growth engines on a worldwide basis.

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.

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.

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.