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Non-Branded PC Market Positioned For Growth: Page 2 of 3

Component makers have also offered special pricing that helps non-branded manufacturers stay competitive with the large PC builders.

In 2003, white-box PCs accounted for 28 percent of desktops, 14 to 15 percent of notebooks and 22.6 percent of servers sold in the U.S., IDC said. The server figures are preliminary.

If the economy continues to improve, then non-branded PC makers are poised to boost market share in two years, particularly in the notebook and server segments, Daoud said. Their share of the desktop market is expected to remain about the same, as more and more businesses and consumers turn toward portable PCs.

"Everything depends on the performance of the economy, but where the economy is right now we don't know, except that it's showing signs of growth," Daoud said. "Volume wise, (white-box PCs) will continue to grow, but in terms of the speed with which they'll grow, it will depend on demand."

Manufacturers usually sell more non-branded PCs a year after the economy recovers, Daoud said. The reason is the majority of buyers are state and local governments, and small and midsize businesses.