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When chip prices are down PC demand soars

A chip price war will bolster PC shipments this year, but despite the boost, revenue will continue to decline, predict analysts.

Competitive pricing between processor manufacturers is boosting PC shipments but failing to ignite revenue according to Gartner.

Worldwide PC shipments will rise by 10.5 per cent on 2005's figures to top more than 233 million during 2006.

However, despite this positive market outlook in terms of numbers shipped, revenue will drop by 2.5 per cent to fall short of $200 million ($198.3 billion).

Emerging markets will benefit from faster growth and will continue to report double digit increases over the next two years, claims the analyst's Dataquest Insight: 3Q06 Update, Global PC Forecast Scenarios, 2006-2008 report.

However, even the imminent arrival of Microsoft's next brainchild is unlikely to stem the flow of financial loss for already mature markets.

"Vista's eventual release next year could stimulate some added growth, but we remain skeptical of Vista's impact," added Shiffler.

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