Dell edges Compaq in worldwide PC sales

Dataquest analysts attributed Dell's rise to being better able to manage the one-two punch of weakened demand and oversupply in the months following the holiday season.

Dell shipped 4.2 million personal computers worldwide in the first quarter, an increase of 34.3 per cent over the same quarter last year. Compaq shipped 3.9 million, a gain of only three-tenths of a per cent . Hewlett-Packard (HP) watched its market share contract to 7.3 per cent from 7.9 per cent in the same quarter last year, and its shipments shrink 3.5 per cent to 2.4 million. IBM increased its shipments by 7 per cent to 2 million.

Total worldwide shipments of 32.5 million PCs improved on the 31.4 million figure for the first quarter of 2000, but the gain could not be attributed to robust shipments in the U.S., according to Dataquest's figures. Total PC shipments in the US fell by 3.5 per cent to 11 million from 11.4 million, Dataquest's report said.

Dell's 30.7 per cent growth for the quarter in the US came as its three nearest rivals saw significant declines in US shipments. Compaq shipped 1.5 million PCs -- 17.9 per cent fewer than the same quarter last year, HP shipped 1.1 million -- 24.7 per cent fewer year-on-year, and Gateway shipped 900,000 PCs, a decline of 9.1 per cent . IBM improved its shipment figures by 19 per cent to 600,000 computers, an exception to the general decline.

Dell continued to lead the US market with 23 per cent of shipments, up from 17 per cent . Compaq slipped to 13.9 per cent of market share from 16.4 per cent , while HP dropped to 9.8 per cent from 12.6 per cent . Gateway slipped to 8.5 per cent from 9.1 per cent of the US market, and IBM climbed to 5.2 per cent from 4.2 per cent .

Dataquest called the US market saturated, and said in the report that computer makers will look to Europe and other markets for growth to offset the stagnation of the US market.

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