The fundamental economy in Europe is not bad. Seven percent growth would have been disappointing last year. Now, it's reassuring. Like the United States, where market saturation has hurt PC sales, Davies said the days of double-digit growth are over in Europe. Other market researchers expect the same or slightly worse when final sales figures for Europe come in.
Dataquest analysts are somewhat more cautious.
The consumer slowdown that affected Europe during the fourth quarter of 2000 continued into the first months of 2001, and a flat performance is expected in this segment. Views on European sales depend on one's point of view. Chipmaker Intel, for instance, said European sales have been slower than normal. But Intel's figures reflect excess inventory. PC makers mostly incorporated a lot of parts they already paid for in the fourth quarter.