To: Mohan Marette who wrote (82480 ) 11/27/1998 9:24:00 AM From: Zeem Respond to of 176387
Dell is the top PC provider to big business-study November 24, 1998 9:08 PM EST ROUND ROCK, Texas, Nov 24 (Reuters) - Dell Computer Corp. (Nasdaq: DELL) became the leading PC provider to U.S. businesses with more than 500 employees during the third quarter this year, according to a report from Ziff-Davis Market Intelligence cited by Dell on Tuesday. "Dell is making dramatic gains in the very spot where its indirect competitors initially fostered their respective businesses -- the large commercial business segment," Matt Sargent, senior industry analyst with ZD Market Intelligence, said in a statement. "The study showed that Dell is making sizable gains in the installed base of the enterprise marketplace beyond its traditional large government and educational strongholds," he said. In the third quarter Dell took the lead in the large business segment with a market share of 29.8 percent compared to 22.6 percent in the second quarter, the study said. Compaq Computer Corp. (NYSE: CPQ) slipped to second in the segment. It had a market share in the segment which declined to 23.6 from 27.8 percent in the earlier quarter. However, most industry research continued to show Compaq holding the lead in overall business and consumer personal computer sales, both in the United States and worldwide. The vast bulk of Dell's computers are sold to businesses, with only 10-15 percent purchased by consumers. Of business sales, two-thirds are to what Dell classifies as large businesses, and one-third are to small- and medium-sized businesses Dell cited recent business with national companies such as FTD Inc. and Sara Lee Corp., (NYSE: SLE) as part of its focus on the enterprise marketplace. Dell also said Tuesday it that Mobil Corp. (NYSE: MOB) agreed to a new three-year, $75 million deal with Dell, which will become Mobil's standard brand for desktops, notebooks and servers worldwide. "Going forward, we plan to use the Internet to build and enhance business relationships in ways that benefit customers and extends our leadership in this important segment," the company said in a statement. The ZD Market Intelligence study was based on results from several thousand interviews with businesses and governmental and educational institutions about their hardware and software purchases made during the prior 90 days. Dell is the world's leading direct distributor of personal computers and the third largest PC supplier overall, trailing Compaq and IBM (NYSE: IBM) in the latest industry shipping statistics. REUTERS