PC shipments totaled 134.7 million systems in 2000 vs. 117.6 million in 1999, according to a new report from Dataquest. In the U.S. market, PC unit growth was even lower last year, rising by 10.3% to 49.4 million systems from 44.8 million units in 1999, reported the research firm.

But there is a silver lining to the dismal fourth quarter, suggested Dataquest analyst Charles Smulders. "While lower growth rates during the fourth quarter last year made for a disappointing quarter for the industry, it does help allay some of the fears of inventory overhang going into the first quarter of 2001, particularly in the U.S. retail market," Smulders said.

"This is better news for the industry, both because it suggests that vendors were able to take some action to stem and reduce the buildup evident in the early part of the quarter, and the anticipated sell off of excess finished goods' impact on 2001 first quarter shipments should be less pronounced," he said.

Analysts tracking PCs generally expect unit shipments to increase by 14-to-18% in 2001, depending upon the health of U.S. and world economies this year as well as greater acceptance of higher-speed CPUs--such as Intel Corp.'s Pentium 4--and faster DRAM main memories in new computer models. Dataquest is currently projecting a 16% increase in PC unit shipments in 2001 to 156 million systems.

Dataquest said Compaq Computer Corp. ended 2000 on top of the PC business with 17,203 units shipped and 12.8% market share worldwide. In 1999, Compaq shipped 15,870 units. Dell Computer Corp. was second with 14,536 units shipped in 2000, or 10.8% market share, and an increase from 11,459 in 1999.

Hewlett-Packard Co. passed IBM Corp. as No. 3 in the PC business last year with 10,237 units shipped, or 7.6% market share. HP delivered 7,600 personal computers in 1999. IBM's unit growth fell 1.8% to 9,162 units shipped in 2000, or a 6.8% market share worldwide, said Dataquest. IBM shipped 9,331 PCs in 1999, said Dataquest.