Dell Sees Market Turmoil As Share Shift To Dell
NEW YORK (Reuters) - Dell Computer Corp. (Nasdaq:DELL - news), the fast growing No. 2 personal computer maker, continues to gain share at the expense of competitors, its chief executive said Tuesday as he cast scorn on the view that overall PC industry growth is slowing.
At a press briefing here, Michael Dell, founder, chairman and CEO, said the Round Rock, Tex.-company earned 55 percent of the PC industry's total profit in the first quarter and that its profit share may increase in the second quarter.
''Dell earned about 55 percent of the total profitability in the first quarter,'' Dell said, referring to the reported profits of major personal computer makers.
''Based on the preannouncements of some of our competitors, we think that figure may increase in the second quarter,'' he said, referring to a warning by rival Compaq Computer Corp. (NYSE:CPQ - news) that it would report a loss in the second quarter.
''We are in full account acquisition mode,'' Dell said, referring to the increasing number of corporate sales accounts Dell has won away from Compaq during its recent business turmoil and ongoing restructuring efforts. ''It's sort of a perfect competitive environment,'' he added.
However, he cautioned that it might take several quarters for the full effect of the new business Dell is winning away from Compaq to show up in its financial results, as the new customers transition to Dell's direct ordering process.
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