IDC Reports Strong Personal Computer Market Growth, Despite Japanese Decline; Compaq, Dell, And HP All Post More Than 50 Percent Growth
PR Newswire - October 27, 1997 07:36
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MOUNTAIN VIEW, Calif., Oct. 27 /PRNewswire/ -- The personal computer
market exhibited stellar growth in the third quarter of 1997, according to
preliminary data released today by International Data Corporation.
Unit shipments worldwide rose 16 percent over the year-earlier quarter,
and six percent over the second quarter 1997. The U.S. market continued to
surge ahead with substantial growth of 20 percent over second quarter 1996 and
15 percent over last quarter. The strength of the U.S. and other regions
offset a decline in Japanese market shipments.
"New low price points and technologies drove consumer demand, while
business investment propelled the commercial market," said Kevin Hause, senior
analyst in IDC's Personal Systems research program. "As PC vendors improve
price/performance through refinements to their business models and cost
structure, we believe demand is rising."
Compaq's top market share grew to 14 percent as the company's worldwide
unit shipments swelled 52 percent over the year ago period. Hewlett-Packard
continued its impressing growth, increasing worldwide unit shipments by
62 percent. For the third consecutive quarter Dell posted growth in excess of
50 percent, while IBM's growth slowed to 10 percent but still maintained its
number two standing in the market.
Market Highlights
Demand in the U.S. market, which sustained 20 percent growth for the third
straight quarter, was driven by a number of factors. IDC believes the key
catalyst for growth was the healthy economy. Consumer confidence is near
record levels and businesses are flourishing, stimulating technology
investment from both segments. As these conditions persist, and
price/performance levels continue to improve, all the elements are in place
for a strong fourth quarter.
For the first time in a year and a half the Japanese market actually
shrank, posting negative 12 percent growth for the third quarter. "Continued
economic uncertainty, high price points, and NEC Japan's transition to a new
platform depressed the Japanese market," said John Brown, senior analyst with
IDC's Worldwide Quarterly PC Market Tracker Program. "Although the third
quarter was disappointing, we expect the market to rebound in the fourth
quarter."
Other regions displayed mixed results, relative to the worldwide average.
The Asia/Pacific region turned in 20 percent growth, while Western Europe
posted better-than-expected growth of 14 percent, driven by strong demand in
the business and consumer markets of France and Italy.
Third Quarter Vendor Review
Compaq experienced a bang-up quarter, as commercial accounts responded
well to the company's move toward a more aggressive price position. The
company also found success in retail -- with both its sub-$1,000 systems and
its higher performance models. Compaq's portable offerings also contributed
to the growth, and the company fared well in Europe, further boosting
worldwide sales. Growth enabled the company to widen its lead considerably,
both in the U.S. and worldwide.
IBM held onto the number two spot worldwide, as commercial desktops,
portables, and servers did well. However, the company's consumer business put
a real drag on growth, as the Aptiva line was caught without a product in one
of the fastest growing segments (low-cost), and was over-priced in the rest of
the market.
Dell continued its string of impressive growth quarters, propelling the
company into the number two position in the U.S. and establishing itself as
the number three vendor worldwide. Commercial desktops and servers are
fueling the growth, while new initiatives like workstations ramp up. As the
company makes further strides in the consumer segment and introduces new
products in the portable arena, Dell is positioned to continue its fast
growth.
HP was another big winner during the quarter, growing worldwide unit
shipments in excess of 60 percent and U.S. shipments by 70 percent. The
company found growth in both the commercial and consumer segments, as the
Pavilion line of retail systems retained the popularity it found in the
spring.
Packard Bell NEC was relatively flat worldwide, as the company transitions
into its new commercial distribution model. The company is focusing on
profitability within its consumer segment, eschewing growth in favor of
margins. This strategy may exclude Packard Bell NEC from the high-growth
sub-$1,000 segment during the critical fourth quarter.
Table 1
Top 5 Vendors, US PC Shipments, Third Quarter 1997
(Preliminary)
(Thousands of Units)
Q397 Q3 1997 Market Q3 1996 Market Growth
Rank Vendor Shipments Share Shipments Share 1997/96
1 Compaq 1,578 18.8% 943 13.5% 67%
2 Dell 812 9.7% 495 7.1% 64%
3 Packard Bell NEC 681 8.1% 722 10.4% (6%)
4 IBM 652 7.8% 615 8.8% 6%
5 Hewlett-Packard 593 7.1% 348 5.0% 70%
Others 4,061 48.5% 3,851 55.2% 5%
All Vendors 8,377 100.0% 6,975 100.0% 20%
Shipments are branded shipments and exclude OEM sales for all vendors
Data for all vendors are reported for calendar periods
Data for Packard Bell NEC includes shipments for Packard Bell, NEC, and
ZDS
Source: International Data Corporation, October 1997
Table 2
Top 5 Vendors, Worldwide PC Shipments, Third Quarter 1997 (Preliminary)
(Thousands of Units)
Q397 Q3 1997 Market Q3 1996 Market Growth
Rank Vendor Shipments Share Shipments Share 1997/96
1 Compaq 2,775 14.2% 1,822 10.8% 52%
2 IBM 1,661 8.5% 1,512 8.9% 10%
3 Dell 1,221 6.2% 796 4.7% 53%
4 Hewlett-Packard 1,126 5.8% 695 4.1% 62%
5 Packard Bell NEC 990 5.1% 1,006 5.9% (2%)
Others 11,778 60.2% 11,082 65.5% 6%
All Vendors 19,550 100.0% 16,913 100.0% 16%
Shipments are branded shipments and exclude OEM sales for all vendors
Data for all vendors are reported for calendar periods
Data for Packard Bell NEC includes shipments for Packard Bell, NEC, and
ZDS
Data for Packard Bell NEC does not include NEC Japan or NEC China
Source: International Data Corporation, October 1997
About IDC
Headquartered in Framingham, Mass., International Data Corporation
provides IT market research and consulting to more than 3,900 high-technology
customers around the world. With a global network of 300 analysts in more
than 40 countries, IDC is the industry's most comprehensive resource on
worldwide IT markets, products, vendors, and geographies.
IDC/LINK, an IDC subsidiary, researches and analyzes the home computing
market, leading-edge technologies in telecommunications and new media, and the
convergence of computing and consumer electronics.
IDC's World Wide Web site ( idc.com ) contains additional
company information and recent news releases and offers full-text searching of
recent research.
IDC is owned by International Data Group (IDG), the world's leading IT
media and research company.
All product and company names may be trademarks or registered trademarks
of their respective holders.
SOURCE International Data Corporation
/CONTACT: Kevin Hause, 650-962-6412 or khause@idcresearch.com, John
Brown, 650-962-6478 or jbrown@idcresearch.com, or Hillary DeMello,
508-935-4282 or hdemello@idcresearch.com, all of IDC/
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