Jules, and ALL: Article...Computer sales strong!!
IDC Reports Personal Computer Market Speeds Up in First Quarter Dell Surges to #3 Position in U.S. and Worldwide Rankings
Source: PR Newswire
MOUNTAIN VIEW, Calif., April 28 /PRNewswire/ via Individual Inc. -- Growth in the personal computer market accelerated in the first quarter, according to preliminary data released today by International Data Corporation. Unit shipments worldwide rose 16 percent over the first quarter of 1996, compared to only 13 percent year-over-year growth in Q4 1996. The U.S. recorded a standout 20 percent increase, the fastest of any major region, and the best quarterly domestic growth rate since the end of 1995.
"New products drove sales in the first quarter," said Eric Lewis, manager of Personal Systems research for IDC. "MMX desktop systems, sub-$1000 PCs from major vendors, and high-end portables spurred upgrades and attracted first-time buyers."
Compaq once again led the market, both in the U.S. and worldwide. Dell Computer, continuing its extraordinary growth, edged out a rebounding IBM to come in at third in the U.S., Dell's highest position ever. It also claimed third place in the worldwide rankings, behind Compaq and IBM.
"Dell's ascent was propelled by increasing acceptance of its OptiPlex desktops among major corporations," said John Brown, senior analyst with IDC's Worldwide Quarterly PC Market Tracker program. "It is also becoming more of a true global force, with strong sales in Europe and a rising presence in Japan."
Market Highlights
The U.S. PC market performed very well in the first quarter. Sales were strong across all segments, with both businesses and consumers showing strong demand. Year-over-year growth was 20 percent, the best since Q4 1995. Sequentially, sales slipped by nine percent from their year-end peak, less than normal for this season. Portables were especially strong, but desktops also did well, supported by low-cost PCs, MMX, and the continuing wave of corporate upgrades.
The other major regions of the world were not quite as robust as the United States. PC shipments in Western Europe rose 13 percent, better than in recent quarters, as corporate buying picked up somewhat despite the weak economic conditions in major countries. Economic uncertainty weighed upon sales in major Asian markets as well, holding shipment growth in Japan to 14 percent and in the rest of the Asia/Pacific region to 13 percent, unusually low for that fast-growing part of the world. Demand was stronger in Japan than the shipment numbers indicate, however, as businesses were unable to buy all the systems they wanted due to a shortage of notebook PCs.
First Quarter Vendor Review
Compaq held onto the number-one spot in the U.S. and worldwide for the sixth quarter in row, and even managed to gain some market share. Its portables business is rebounding as it rolls out enhanced products, and corporate demand continues strong. Of particular note was Compaq's release of a $999 consumer PC, which has done well enough to create spot shortages.
IBM, which ranked second worldwide and fourth in the U.S., posted excellent growth. While the U.S. growth rate was inflated by the comparison to last year's first quarter results, which were distorted by IBM's cutting back shipments to trim channel inventories, IBM's renewed focus on its core customers is paying off in rising sales and market share.
Another high-flying vendor is Dell, which grew more than 60 percent in the quarter. Dell's rapid growth indicates its focus on direct sales to larger businesses and governmental institutions, together with a lean cost structure, is paying off. Desktop sales were especially healthy, and the overall total was boosted by good growth in notebooks and Dell's rapidly increasing presence in the server market.
Packard Bell NEC, number two in the U.S. and fourth worldwide, showed signs of improvement from recent periods, which have been plagued by manufacturing difficulties and falling sales. The company's $799 PC, introduced in January, was a hit, becoming Packard Bell's best-selling model. The NEC brand of notebooks and premium desktops also did well.
Gateway 2000, which, like Dell, sells directly to users, had a fine quarter. Shipments rose 35 percent in the U.S., driven by excellent growth in business sales. The company is making progress in its efforts to boost major account sales, while bolstering its traditional stronghold among experienced PC users.
Making its maiden appearance in the worldwide top five is Toshiba, which grew 60 percent on the strength of its dominant position in the portables market. The Japan-based vendor also was helped by seasonal strength in its home country, and by its entry into the commercial desktop market in the U.S.
Table 1 - Preliminary Top 5 Vendors, Worldwide PC Shipments,
First Quarter 1997
(Thousands of Units)
Q197 Vendor Q197 Mkt. Q196 Mkt. Growth
Rank Units Share Units Share 97/96
(K) % (K) % %
1 Compaq 2,023 11.1 1,583 10.0 28
2 IBM 1,613 8.8 1,168 7.4 38
3 Dell 970 5.3 597 3.8 62
4 Packard Bell 905 5.0 1,091 6.9 -17
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It doesn't take a rocket science to figure out Intel's chip's are selling PRETTY GOOD!
If anyone would like to participate in my new thread. "Favorite High Tech Magazine's and News Links" Please do. I think it could be pretty useful.
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