Dell closes in on Compaq
Dell challenges Compaq's U.S.
dominance in the second quarter
July 26, 1999: 11:10 a.m. ET
NEW YORK (CNNfn) - Dell Computer closed the gap
on Compaq during the second quarter in a climate of
increased demand for personal computers, data
released Monday indicated.
Strong performance from its Presario line of
personal computers helped Compaq remain on top of
the industry with a 14.6 percent share of the market,
according to a study by International Data Corp., a
technology research firm.
Coming in second worldwide was Dell, with 10.8
percent, followed by IBM with 9.2 percent), Hewlett
Packard at 6.6 percent, and NEC with 5.3 percent.
In the United States, however, Compaq (CPQ),
with 16.6 percent of the market, finished with a hair's-
breadth lead over Dell (DELL), with 16.3 percent.
Rounding out the top 5 computer makers in the
United States were IBM (IBM) at 8 percent, Gateway
(GTW) at 7.8 percent, and Hewlett-Packard (HWP) at
7.8 percent.
Overall, worldwide PC unit sales grew 27 percent
during the second quarter of 1999, and worldwide
shipments stood at 25.6 million.
The United States market was the most robust,
with volume growth expanding 35.3 percent to 10.8
million units for the quarter.
"The potent combination of the super low-cost
segment with the subsidized or 'nearly free' PC
model, rebates, and Internet service provider bundling
catalyzed market expansion," said Christine
Arrington, manager of U.S. PC Tracking at IDC.
As computer profits have been put under
pressure, PC firms have tried to come up with
innovative ways to boost revenue.
One of these has been the "free" PC movement,
whereby consumers sign up for a set period of
Internet access, usually three years, in exchange for
a free computer, with the access effectively
subsidizing the cost of the computer.
Additionally, companies like Gateway and Dell
plan to offer their own branded ISP service with their
computers. |
