Mumbai: For every two new PCs shipped to mature markets in 2005, one second hand PC will be resold, says a new study by Gartner, Inc. What should worry manufacturers is the finding of the study that demand for used PCs (Gartner refers to it as secondary PCs) in emerging regions is that often it exceeds supply in some markets.

Currently, one in 12 PCs in use world-wide are secondary PCs. Gartner refers to a second-hand PC as a PC that has been used for more than three months by its primary / initial user and then made available to another user for secondary use. Such PCs mainly come from supplier nations, such as the US, Japan and Western Europe, into demand regions such as Eastern Europe, Middle East and Africa (MEA), Latin America and Asia / Pacific.

In 2004, 152.5 million secondary PCs were shipped. Gartner analysts estimate 36 per cent of secondary PCs or 55 million PCs, were dedicated to reuse. These secondary machines will provide a strong base from which the used PC market will grow.

"The demand for secondary PCs continues to exceed supply, providing opportunistic but potentially lucrative opportunities for specialised intermediaries and resellers or vendors looking to resell used PCs," said Meike Escherich, principal analyst for Gartner's client platforms research group. "The demand for secondary PCs in emerging regions, such as Eastern Europe, Middle East and Africa, Latin America and parts of Asia / Pacific, is likely to grow as pressure increases on developing countries to accept used PCs as a viable technology solution. Unlike mature markets, operating system intellectual property rights are rarely respected allowing lower resale values for secondary machines."

Gartner analysts said the secondary PC market will continue to grow during the next several years in the home and professional markets, sparked by replacement activity, longer system life, new-seat opportunities in low-cost regions.

"With recycling legislation becoming more common, organizations will have a greater incentive to sell their used PCs," Ms. Escherich said. "PC performance is extending the useful life of PCs. At the same time, users are opting to extend the life spans of installed PCs. This may increase used PC availability."