To: Mazman who wrote (59742 ) 8/20/1998 8:26:00 PM From: Mazman Read Replies (1) | Respond to of 176387
Dell Builds Market Share In Europe (08/20/98; 7:30 p.m. ET) By Andrew Craig, TechWeb Dell has strengthened its position in the European PC market, even though consumers in Europe -- in contrast to the United States -- have yet to embrace the Internet as a sales channel, according to analysts. Dell is now the No. 2 PC vendor in Europe in terms of the number of units shipped, according to analysts. The company is also ranked second in terms of sales, according to its financial results published Wednesday. Compaq, which now incorporates recently acquired Digital, is the largest PC vendor in Europe, the Middle East, and Africa with 17.1 percent of the market, according to Framingham, Mass.-based research company International Data Corp. In the past 12 months, Dell has overtaken IBM and Hewlett-Packard to capture a 7.8 percent share of the European, Middle Eastern, and African market. Dell, which sells its computers directly to customers rather than through resellers, increased its share in the region by more than 81 percent in the past year -- shipping almost half a million PCs. Selling directly has enabled Dell to achieve its strong position in Europe, said Jan Gesmar-Larsen, president of Dell in Europe, Middle East, and Africa. "Our excellent performance across Europe highlights the [direct sales] model's growing popularity in the marketplace," he said in a statement. Although Dell sells an estimated $4 million worth of PCs per day via the Internet in the United States, European consumers still don't have enough confidence in the security of the Internet to purchase computers, said Ian Darbyshire, manager of IDC's Europe, Middle East, and Africa Quarterly PC Tracking Program. "Although people are configuring and knowing what to order using the Internet, they are still phoning in their credit card details because they think the Internet is unsafe," he said. The situation will change, however, as customers increase their confidence in the Internet, said Darbyshire. "From the vendor point of view, the Internet is a godsend because it provides such a cheap route to market," he said. Dell holds the second-place position in the United Kingdom with 15.8 percent of the PC market. In Germany, Dell is sixth, and holds the fifth spot in France. In the Nordic countries, including Sweden, Dell is ranked third with a unit market share of 12.6 percent, an increase of 231 percent year-on-year. Dell is second in the Benelux countries -- Belgium, the Netherlands, and Luxembourg -- and ninth in Italy. Dell now plans to open its third European call center in Copenhagen on Sept. 3 to support the company's growth in northern Europe. The call center will be concentrated on the home- and small-business market. Dell's other European call centers are in Ireland and France.