International Data Corp

Worldwide sales of personal computers slowed for a second consecutive quarter, with Dell Computer Corp. the only major PC maker to see an increase in the just-concluded third quarter, two research firms said. Gartner Dataquest and International Data Corp. both blamed the ongoing PC slump on a saturated market and weak economic conditions made worse by the Sept. 11 terrorist attacks. Analysts from both firms said many people also were waiting to see what Hewlett-Packard Co.'

Santa Clara-based Yahoo Inc. and Arlington, Va.-based MCI Communications Corp. said they will start an online service targeting users of sub-$1,000 personal computers. The service would be available in March. The companies plan to market the service on Yahoo's popular Internet site from which users can download the software. With the new service, Yahoo, the most popular Internet directory, hopes to challenge Dulles, Va.-based America Online Inc., which now has more than 10 million subscribers.

Companies and governments around the world will spend an estimated $311 billion to fix the year 2000 computer bug, a new International Data Corp. report says. Spending this year alone is estimated at $97 billion. An estimated $184 billion was spent from 1995 to 1998, and a projected $30 billion will be spent in 2000 and 2001, the market research firm says in a report expected to be released Thursday.

Intel Corp. confirmed there have been spot shortages of some of its more affordable processors, causing a shortage of cheap personal computers for corporate users. Computer dealers and distributors are reporting scant supply of PCs with 266-megahertz and 300MHz Pentium II chips. Intel is pushing its top-of-the-line processors while demand from corporate buyers for cheaper PCs is picking up.

Sales of personal computers worldwide slowed sharply in the fourth quarter, but the industry's second-largest player, Dell Computer Corp., took market share on strong sales growth, two research companies said Friday. Sales grew only 9.2% in the quarter as holiday buying unexpectedly slumped, according to International Data Corp. Competing market research firm Dataquest estimated the growth rate at 10.1%.

With technology boot camps for teachers and computer-leasing programs for parents, Apple Computer Inc. has been fighting hard to regain ground after losing its lead in educational sales to Dell two years ago. Apple has boosted its market share from a low of 19% in the fourth quarter of 2000 to more than 23% in the second quarter of this year, according to International Data Corp. Still, Dell had 37.5% in the second quarter.

The consumer software market reached about $5.5 billion in worldwide revenue last year, a 15% increase, buoyed by strong sales to repeat customers and well-known brands, a study said. Home education software led all categories, with sales rising 17% in 1997, according to market researcher International Data Corp. Revenue in games and entertainment, the largest consumer software segment, grew about 15%, driven by strong demand for games that involved a lot of graphics.

Dell Computer Corp. surpassed rival Compaq Computer Corp. in U.S. personal computer sales last quarter--the first time Dell has held such a commanding lead over its Texas rival, two research firms said. Dell, based in Round Rock, Texas, sold nearly 2 million PCs from July through September, grabbing a 17.1% share of the U.S. market, up from 13.4% in the same quarter a year ago, according to research firm Dataquest. Compaq, based in Houston, sold 1.78 million computers, giving it a 15.

International Business Machines Corp. is expected to launch a major new family of mid-size computers next week, and its nearest rival is preparing for a long, hard fight for customers. Digital Equipment Corp., the world's No. 2 computer maker, sent executives to meet the press Wednesday and prepare the groundwork for a response to the IBM computer family code-named Silverlake.