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Pastimes : Home on the range where the buffalo roam -- Ignore unavailable to you. Want to Upgrade?

To: Lizzie Tudor who wrote (9452)	10/18/2002 2:42:21 PM
From: stockman_scott	Read Replies (1) \| Respond to of 13815

<<...Cisco is really an expectations game at this point I'd say, depending on how bad things really are, the stock could go either way...>> I agree...Chambers will most likely find a way to spin things and tactfully manage the expectations -- he's had LOTS of practice...=)

To: Lizzie Tudor who wrote (9452)	10/18/2002 3:26:38 PM
From: stockman_scott	Respond to of 13815

Dell Overtakes HP For PC Sales Crown, Says Industry Survey BY PATRICK SEITZ Investor's Business Daily Friday October 18, 10:31 am ET Hewlett-Packard Co.'s <hpq.N> reign as the world's No. 1 personal computer maker was short-lived. After one quarter at the top, HP officially lost the crown Thursday to archrival Dell Computer Corp. HP took the title from Dell in May when it merged with Compaq Computer Corp. Market researcher International Data Corp. gave the edge to Dell for the third quarter based on units shipped. The market share difference between Dell and HP isn't large, but it's statistically significant, IDC reports. In the third quarter, Dell shipped 5.2 million PCs worldwide for a 16% market share compared with 15.5% for new No. 2 HP, according to IDC. However, rival market tracker Gartner Inc. called the battle for the No. 1 slot a virtual dead heat. Its preliminary figures show Dell with a 15.8% market share to HP's 15.7%, but the lead could change when final numbers come in. "It looks like Dell might edge out HP this quarter, but I wouldn't be surprised if HP resumes the lead in the fourth quarter because they have such a strong home market presence," said Gartner analyst Todd Kort. "But I would expect that in 2003 and beyond Dell will probably take the lead for good." Dell simply has a faster growth rate, he says. Jim McDonnell, vice president of sales and marketing for HP's PC group, says his company doesn't plan to give up the No. 1 spot without a fight. "We're going to do our damnedest to make a change," he said. "We're going to continue with our momentum." HP has new products coming out, such as a media center desktop PC and Tablet PC notebook as well as cheaper notebooks and desktops for business customers. The company also is re-engineering its supply chain, working more closely with resellers and building its direct sales. "In an increasingly commoditized business, the cost leader has the pole position. And Dell's in that position," said IDC analyst Roger Kay. When HP announced its merger with Compaq in September 2001, it crowed about its soon-to-be No. 1 status in personal computer sales worldwide. No longer. The combination of HP's and Compaq's PC businesses gave them a slight edge over Dell. Dell's shipments were up 23.3% for the quarter. HP's were down 4.9%. All other vendors were up 2.1%, IDC reports. Dell sold 174,000 more PCs than HP last quarter, or about 3.5% more PCs than its rival. Dell has been gaining PC market share aggressively and profitably for the last two years. It's been using its direct sales, build-to-order business to undercut rivals. It saves money by keeping inventories low and not using middlemen to sell machines. In the second quarter, HP had 15.1% global market share to Dell's 14.8%, IDC says. In the third quarter of 2001, when HP and Compaq announced their merger, the companies had a combined 16.9% market share to Dell's 13.5%, IDC reports. The global PC market began growing again in the third quarter after five straight quarters of decline. Third-quarter shipments were up 3.8% from a year ago to 32.6 million units. The growth essentially met expectations of a seasonal increase amid difficult market conditions. "This represents a stabilization of the market, with a very guardedly optimistic outlook for the next period," Kay said. IDC forecasts a single digit rise in PC sales in the fourth quarter over last year's period. The news wasn't all bad for HP, which appears to be overcoming merger-related challenges, Kay said. "HP looks to have stabilized in Q3, which is actually a pretty good recovery given the fact that they'd just closed the merger and Compaq was bleeding market share going into it," he said. HP showed sequential growth of 15% in U.S. PC shipments from the second quarter. That compares with overall market figures showing PC sales up 8.2% in the U.S. and 6% worldwide from the second quarter. But can Dell hold on to the No. 1 slot? It shows no signs of slowing its relentless pace, Kay says. It has bolstered its position by increasing consumer sales, thanks to a popular ad campaign. biz.yahoo.com