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5/17/99 Computer Reseller News 127
1999 WL 2102703
Computer Reseller News
Copyright 1999 CMP Publications Inc.
Monday, May 17, 1999
842
Systems & Peripherals
PC arena still packs a punch
--
Worldwide industry shipments hit 25 million units for first quarter of 1999
Jennifer Hagendorf
San Jose, Calif. - Compaq Computer Corp. topped strong worldwide PC
shipments but lost market share for the first quarter of 1999, according
to a recent research report.
Worldwide industry shipments for the quarter reached 25 million
units, up from 21.3 million for the same quarter a year ago, according
to preliminary results from Dataquest, a San Jose-based market-research
firm. The industry growth rate topped 17 percent.
Strong consumer sales, especially in Europe, fueled overall industry
growth while corporate sales remained stable, said David Stremba,
principal analyst for Dataquest's Personal Computers Worldwide Program.
"The commercial side is dealing with Y2K issues," said Stremba.
Houston-based Compaq topped the list with 3.4 million units shipped,
up from 3 million the previous year, but saw market share dip to 13.4
percent, down from 14.3 percent.
Compaq's 9.9 percent growth rate pales in comparison to No. 2 Dell
Computer Corp., which saw growth of 49.1 percent.
"Compaq is in a precarious situation because they don't have proven
leadership at the top," said Stremba.
At least two more months will pass before Compaq finds an appropriate
leader, and a real turnaround in the company's performance will not be
seen until the end of 1999 or early 2000, Stremba said.
Confusion in the channel over Compaq's move toward a hybrid
distribution model also slowed the company's growth, he said.
Compaq's poor performance rate took some industry watchers by
surprise, said Stremba.
Dell, Round Rock, Texas, shipped 2.3 million units, up from 1.5
million the previous year. Its market share grew to 9.2 percent, up from
7.2 percent.
"Dell was able to capitalize on some the missteps made by Compaq in
the marketplace," said Stremba.
Because Dell's direct model gives it total control over its
distribution, it is easier for the company to meet unit-shipment goals,
said Stremba.
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