Compaq Finishes 1999 as Number One in WW PC Market, But Dell Heads Into Millennium in Charge in the U.S. Says IDC Asian markets complete recovery with strong end of year results
FRAMINGHAM, Mass., January 24, 2000 - Healthy consumer demand and record highs in the Asian region brought a strong close to the 1999 worldwide PC market. According to preliminary estimates from IDC worldwide shipments rose to 33.2 million units for Q499, representing growth of 19 percent year on year and 18 percent sequentially. Total 1999 worldwide shipments surpassed the one hundred million mark with growth of 23.3 % over 1998, accounting for 112.7 million PC shipments.
Worldwide volume increases in Q4 were led by strong results in Japanese and Asia/Pacific (excluding Japan) areas, which both racked up year-on-year growth of 38%. The consumer market has been the primary growth catalyst in the Japanese market in 1999, which topped all regions for the year with 36 percent growth. Y2K issues failed to stymie the Asia Pacific market as the small and medium business spending offset the impact of a large business lockdown in the fourth quarter. ?After a very dismal 1998 the Asian markets have made a complete turnaround and pose great opportunity for manufactures in the new millennium,? said John Brown, Director of Worldwide PC Tracking at IDC
Despite some softness in the business marketplace, the U.S. market remained stable, fueled by robust consumer buying. For Q4, U.S. volume grew 5% sequentially and 17% over the same quarter last year. For 1999 as a whole, the market expanded at a healthy 24% over 1998 as year-end consumer demand roared based on low price points, rebates and major changes in product design.
Internet demand and pricing actions in Western Europe continue to drive consumer sales, as the Y2K effect was offset by strong small and medium business demand in the commercial sector. Elsewhere, Russia and Brazil have made a turnaround and combined with positive results from Canada and Middle East markets have led ROW growth.
Vendor Results
Units gains worldwide were healthy for many major vendors in a market, marked by a major concerns of the Y2K bug and a tightening in consumer demand. The top vendors in the U.S. continue to focus on luring consumers, increasing efficiencies, and building programs and practices devoted to creating ?outside the box? revenues.
In the U.S., Dell held tight to the number one position with 2.1 million units in the quarter and also managed to obtain the number one ranking for the year. The direct vendor turned in year over year growth of 53%. Dell managed to work through the obstacles facing many PC vendors, such as memory prices or LCD panel shortages, flawlessly and continues to dominate corporate sectors.
Compaq was able to remain the number one vendor worldwide and continue to be in a dogfight for the number one spot in the US. The company also managed to capture top spot for the year worldwide with 14% market share by posting 19% growth over 1998.
IBM continues to struggle in the US as it took its first steps in pulling out of the retail market losing sales during the seasonally strong consumer quarter. Even with its consumer woes and Y2K lockdown issues the company was able to remain one of the top five manufactures in the U.S. Withstanding chip issues and Y2K slowness Gateway remained in the top 5 rankings in the U.S. and obtained the number three ranking for the full year. Strong consumer sales were able to offset weakness in the commercial sector and keep the vendor moving in the right direction.
Hewlett-Packard took advantage of strong holiday buying that benefited its consumer lineup and boosted it U.S. PC volume by 64%. Outside of the U.S., the company continues to have success in Western Europe and Asia Pacific due to the performance of its commercial lineup.
On a worldwide basis, the combined Fujitsu and Siemens, weighed in at the number five market share spot. The first quarter of a merger of these two companies has proven to be beneficial, with a move to the number two position in Western Europe.
Table 1 Top 5 Vendors, U.S. PC Shipments, Fourth Quarter 1999 (Preliminary) (Thousands of Units)
Q499 Q4 1999 Market Q4 1998 Market Growth Rank Vendor Shipments Share Shipments Share 1999/98
1 Dell 2,110 16.8% 1,375 12.8% 53% 2 Compaq 2,024 16.1% 1,949 18.1% 4% 3 Hewlett-Packard 1,282 10.2% 783 7.3% 64% 4 Gateway 1,156 9.2% 981 9.1% 18% 5 IBM 694 5.5% 978 9.1% -29%
Others 5,280 42.1% 4,696 43.6% 12%
All Vendors 12,546 100.0% 10,762 100.0% 17%
Shipments are branded shipments and exclude OEM sales for all vendors Data for all vendors are reported for calendar periods Data for NEC/PBNEC includes shipments for Packard Bell, NEC, NEC Japan, NEC China and ZDS Data for Compaq includes shipments for Compaq, Digital Equipment and Tandem Source: International Data Corp., Q1 2000
Table 2 Top 5 Vendors, Worldwide PC Shipments, Fourth Quarter 1999 (Preliminary) (Thousands of Units)
Q499 Q4 1999 Market Q4 1998 Market Growth Rank Vendor Shipments Share Shipments Share 1999/98
1 Compaq 4,552 13.7% 4,196 15.1% 8% 2 Dell 3,357 10.1% 2,315 8.3% 45% 3 IBM 2,505 7.6% 2,677 9.6% -6% 4 Hewlett-Packard 2,477 7.5% 1,657 6.0% 49% 5 Fujitsu Siemens 1,725 5.2% 1,028 3.7% 68%
Others 18,562 55.9% 15,974 57.4% 16%
All Vendors 33,178 100.0% 27,847 100.0% 19%
Shipments are branded shipments and exclude OEM sales for all vendors Data for all vendors are reported for calendar periods Data for Fujitsu Siemens includes shipments for Fujitsu and Siemens Data for Compaq includes shipments for Compaq, Digital Equipment and Tandem Source: International Data Corp., Q1 2000
Table 3 Top 5 Vendors, U.S. PC Shipments, Full Year 1999 (Preliminary) (Thousands of Units)
1999 1999 Market 1998 Market Growth Rank Vendor Shipments Share Shipments Share 1999/98
1 Dell 7,492 16.6% 4,799 13.2% 56% 2 Compaq 7,222 16.0% 6,052 16.7% 19% 3 Gateway 4,001 8.9% 3,039 8.4% 32% 4 Hewlett-Packard 3,955 8.8% 2,832 7.8% 40% 5 IBM 3,274 7.2% 2,983 8.2% 10%
Others 19,248 42.6% 16,549 45.6% 16%
All Vendors 45,192 100.0% 36,254 100.0% 25%
Shipments are branded shipments and exclude OEM sales for all vendors Data for all vendors are reported for calendar periods Data for NEC/PBNEC includes shipments for Packard Bell, NEC, NEC Japan, NEC China and ZDS Data for Compaq includes shipments for Compaq, Digital Equipment and Tandem Source: International Data Corp., Q1 2000
Table 4 Top 5 Vendors, Worldwide PC Shipments, Full Year 1999 (Preliminary) (Thousands of Units)
1999 1999 Market 1998 Market Growth Rank Vendor Shipments Share Shipments Share 1999/98
1 Compaq 15,732 14.0% 13,266 14.5% 19% 2 Dell 11,883 10.5% 7,770 8.5% 53% 3 IBM 9,287 8.2% 7,946 8.7% 17% 4 Hewlett-Packard 7,577 6.7% 5,743 6.3% 32% 5 NEC/PBNEC 5,989 5.3% 5,976 6.5% 0%
Others 62,258 55.2% 50,741 55.5% 23%
All Vendors 112,726 100.0% 91,442 100.0% 23%
Shipments are branded shipments and exclude OEM sales for all vendors Data for all vendors are reported for calendar periods Data for NEC/PBNEC includes shipments for Packard Bell, NEC, NEC Japan, NEC China and ZDS Data for Compaq includes shipments for Compaq, Digital Equipment and Tandem Source: International Data Corp., Q1 2000
About IDC
International Data Corporation is the information technology industry's most comprehensive resource on worldwide IT markets, trends, products, vendors, and geographies. IDC provides data, analysis and advisory services to the world's leading IT suppliers as well as IS professionals in finance, insurance, entertainment, advertising, consumer goods and publishing. IDC's research and opinions are based on the results of more than 300,000 end-user surveys, in-depth competitive analysis, broad technology coverage, and strategic analysis. IDC is committed to providing global research with local content through its 500 analysts in more than 40 countries worldwide. Additional information on IDC can be found on its Web site at idc.com.
IDC is a division of International Data Group, the world's leading IT media, research and exposition company.
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John Brown 650-962-6478 jbrown@idc.com
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