Compaq Computer Corp’s market share in Australia rose from 8% to 8.5% in 1997, but IBM Corp is closing the gap, clocking 7.8%, up from its 1996 share of 6.8%. The figures, announced by International Data Corp Australia, place Apple Computer Corp in third spot with 5.6% of the local PC market. Apple has traditionally taken second place, after Compaq. The exponential growth medal goes to Hewlett-Packard Co, which charged up the rankings to seventh place (3.7% of market), displacing Digital Equipment Corp and NEC Corp along the way. Graham Penn, IDC’s head of research in Australia, said mobile computers would continue to lead PC growth, with annual rates of around 16% carrying through to 2002. Other predictions from IDC’s Directions ’98 conference include: the electronic commerce market will be worth $2bn by 2002; communication and information – not entertainment – will win market share for commercial internet players; browser wars are just beginning; and market skirmishes between competing embedded Java applications will escalate.