Sep. 17 (Austin American-Statesman/KRTBN)--After months of tailgating
its cross-state rival, Dell Computer Corp. is now the No. 1 PC vendor
in the United States, according to estimates by International Data
Corp.
Dell, based in Round Rock, edged past Houston-based Compaq Computer
Corp. in the second quarter with a 16.6 percent market share, compared
with Compaq's 16.5 percent, said IDC, a research company near Boston.
The rivalry between the two PC giants had more drama before Compaq ran
into an earnings ditch in the spring. But Dell said Thursday its steady
climb to the top is an endorsement for its business model of dealing
directly with customers and building PCs to their specifications.
Still, Compaq is not conceding much.
"We hold the No. 1 position worldwide," said spokesman Jim Finlaw.
"Day in and day out, we sell more personal computers than anyone else."
IDC estimated Compaq's global market share at 14.4 percent, compared
with 10.9 percent for Dell.
Compaq's difficulties became public in March when it shocked Wall
Street with an earnings warning. That announcement was followed by the
departures of CEO Eckhard Pfeiffer and several other senior executives.
"Compaq since last April ... has been on a downward spiral," said Anne
Bui, a PC analyst for IDC. "Dell is still riding the wave of momentum
they've had in the last few quarters."
Dell earlier this year launched its first major campaign for
consumers' business, while moving aggressively in the small- and
medium-sized business market.
Compaq, under a restructuring announced by new CEO Mike Capellas, is
cutting thousands of jobs and emphasizing products and services that
boost customers' ability to do business over the Internet.
Dell shares closed up $0.06 to $46.75 Thursday, while Compaq gained
$0.43 to $24.00.
By Jerry Mahoney
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