Growth remains limited, but at least the market is moving in the right direction again. We believe the market is a lot healthier than it was three months ago, as inventories have come down and expectations for growth are more realistic.
Dell has a very competitive model.
Currently, the economic environment is not the critical factor affecting PC adoption cycles. What we're seeing now is a combination of PC replacements and new users responding to low-price milestones.
Although it is clear that consumer demand in the U.S. is weakening, buying in other regions remains strong. PCs remain the dominant means of accessing the Internet, and a lot of people out there are still buying PCs to get online.
Hard times persist in the PC market, but vendors are working diligently to stimulate growth and the outlook has started to improve in the United States and Europe.
We don't expect a rapid turnaround, but the seeds of recovery are being sown.
More mature regions like the U.S. and Europe were significantly affected by consumer conservatism and a softening business segment, while Asia and other emerging regions were more robust.
They keep inventory low. They have very responsive systems, and they have maintained their growth momentum for a long time. In fact, over this whole downturn, they've maintained positive unit growth.
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