California Business Minute™

Hi, I am Tim Johnson and welcome to the California Business Minute.

Notebook computer shipments climbed 40 percent last quarter to outstrip desktop sales
for the first time in history according to El Segundo researcher iSuppli Corp.

Portable personal-computer shipments rose to 38.6 million, compared with a 1.3 percent
drop to 38.5 million for desktops. It also raised its forecast for 2008 shipment growth to 13
percent.

Notebooks have fueled sales at Hewlett-Packard Co. and Dell Inc., the two largest PC makers,
as prices for portable models declined. Both companies have targeted overseas customers to
spur growth as U.S. shoppers curb purchases amid the recession. Hewlett-Packard maintained
its lead, with 18.8 percent of the market, iSuppli said. Dell, based in Round Rock, Texas, was
second with 13.9 percent.  Acer Inc., which ranks third, increased its share of shipments by 45
percent, accounting for 12.2 percent of the market, iSuppli said. Smaller, lower-cost machines
known as netbooks accounted for much of that growth.

The research firm forecasts that the total PC market will expand 13 percent this year, up from a
previous forecast of 12.5 percent. Correspondingly PC sales will probably increase 4.3 percent
in 2009, the researcher said. By comparison, Framingham, Massachusetts based researcher
IDC predicts global PC shipment growth will probably slow to 3.8 percent in 2009. The value of
those shipments will fall 5.3 percent as thrifty businesses and consumers demand lower prices.

I am Tim Johnson and this has been the California Business Minute.