Demand for used PCs on the rise in emerging markets: Gartner

Demand for used PCs in emerging regions is robust and is exceeding supply in
some markets, according to Gartner. For every two new PCs shipped to mature
markets in 2005, one secondary market PC will be resold.

Gartner defines a secondary-market PC as a PC that has been used for more
than three months by its primary/initial user and then made available to another
user for secondary use. Such PCs mainly come from supplier nations, such as the
United States, Japan and Western Europe, into demand regions such as Eastern
Europe, Middle East and Africa (MEA), Latin America and Asia/Pacific.

Currently, one in 12 PCs in use worldwide is a secondary PC. In 2004, 152.5
million secondary PCs were shipped. Gartner analysts estimate 36% of secondary
PCs or 55 million PCs, were dedicated to reuse. These secondary machines will
provide a strong base from which the used PC market will grow.

"The demand for secondary PCs continues to exceed supply, providing
opportunistic but potentially lucrative opportunities for specialized
intermediaries and resellers or vendors looking to resell used PCs," said
Meike Escherich, Principal Analyst for Gartner's Client Platforms Research
Group. "The demand for secondary PCs in emerging regions, such as Eastern
Europe, Middle East and Africa, Latin America and parts of Asia/Pacific, is
likely to grow as pressure increases on developing countries to accept used PCs
as a viable technology solution."

He further added that unlike mature markets, operating system intellectual
property rights are rarely respected, allowing lower resale values for secondary
machines. Gartner analysts said the secondary PC market will continue to grow
during the next several years in the home and professional markets, sparked by
replacement activity, longer system life, new-seat opportunities in low-cost
regions.

"With recycling legislation becoming more common, organizations will
have a greater incentive to sell their used PCs," Mike said. "PC
performance is extending the useful life of PCs. At the same time, users are
opting to extend the life spans of installed PCs. This may increase used PC
availability," said he.

America and parts of Asia/Pacific, is likely to grow as pressure increases on
developing countries to accept used PCs as a viable technology solution."

He further added that unlike mature markets, operating system intellectual
property rights are rarely respected, allowing lower resale values for secondary
machines. Gartner analysts said the secondary PC market will continue to grow
during the next several years in the home and professional markets, sparked by
replacement activity, longer system life, new-seat opportunities in low-cost
regions.

"With recycling legislation becoming more common, organizations will
have a greater incentive to sell their used PCs," Mike said. "PC
performance is extending the useful life of PCs. At the same time, users are
opting to extend the life spans of installed PCs. This may increase used PC
availability," said he.

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