The subprime mortgage crisis in the United States intensified in the first quarter of 2008, causing companies in North America to be more conservative in their IT spending. However, the global desktop PC market benefited from the large IT-related demand from financial institutions in emerging markets such as Brazil and Central and Eastern Europe. Also, local governments in these regions are aggressively implementing IT-related programs, and brand-name vendors are making inroads into the value-line market segment, stimulating households to switch to purchases of branded products. Furthermore, the enterprise market in Europe witnessed replacement demand, allowing the Taiwanese desktop PC industry to have a strong performance in the first quarter of 2008, which is traditionally an off-season for the industry. Shipment volume and value both saw growth. Taiwanese desktop PC shipment volume is estimated at 10.77 million units in the first quarter of 2008, up 6.0% year-on-year. Shipment value is estimated at US$3.02 billion in the first quarter, representing year-on-year growth of 18.5%.