U.S. PC demand 'extremely low', unlikely to improve in Q2 - Sanford Berstein

SAN FRANCISCO (AFX) - Demand for PC's remains "extremely low" and is unlikely to improve in the seasonally-weak second quarter, according to analysts at Sanford Bernstein. 	    Results of their latest monthly survey of PS re-sellers underscore low demand expectations, which would appear to tally with Compaq Computer Corp's recent assertion that weakness is most pronounced in the small- to medium-sized business segments, said the brokerage.	    Sanford Bernstein added that Dell Computer Corp, the most aggressive discounter among the hardware makers, is still grabbing market share from its rivals, but is also threatening gross margins across the sector.	    Meanwhile, Gateway Inc's focus on the small business segment is unlikely to bear fruit until the company's restructuring programme is completed in the second half of the year, said Sanford Bernstein.

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