Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Michael Kucera who wrote (93265)	2/1/1999 3:51:00 AM
From: JRI	Read Replies (1) \| Respond to of 176387

Market share numbers for Dell and Compaq are always going to be a bit distorted (confusing...pick your word) because Compaq's numbers represent sales into the channel (not sales out of the channel....sales from 3rd parties to the end-user)..and Dell's (of course) represent sales to end-users.... In Q3, Dell made a huge % marketshare gain against Compaq, because, in the continuing effort to get inventories down, Compaq sold less INTO the channel than its distributors sold to the enduser (so overall unit sales reported by IDC/Dataquest for Compaq were lower than what they normally would have been)...This had the net effect of lowering inventory in the channel in Q3 by something like 3 weeks for Compaq...Additionally, it had the effect of (somewhat artificially) pumping up Dell's number (Dell hadn't sold any more units...but on a % basis, it appeared that Dell had sold a greater % of that quarter's units)...so that Dell appeared to be challenging Compaq for leadership for the #1 position in the U.S.... Compaq continued (this quarter) to have a greater amount sold OUT of the channel than INTO it...and inventory has come down a bit more......but now, sales into the channel more accurately reflect sales to the end-user than the (somewhat) distorted figures of Q2 and Q3..........and therefore now give a more realistic picture of where Compaq really stands concerning marketshare (against Dell, and others).. Now, one could argue, that with 3/4 weeks inventory always in the channel, Compaq's numbers are always going to be a bit inflated (vis-a-vis Dell)...Another argument, another day. Hope this helps..