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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?


To: Night Writer who wrote (52533)3/10/1999 1:12:00 PM
From: Jeffrey James  Read Replies (2) | Respond to of 97611
 
Compaq Increases its Market Share Lead Across Major PC Market Categories In Q4
'98
Wednesday, March 10, 1999 10:33 AM

HOUSTON--(BUSINESS WIRE)--March 10, 1999--

Company Is Number One Worldwide And In U.S.

In Desktops, PC Servers, and Key Business Segments

Compaq Computer Corporation extended its lead in the global PC marketplace in Q4 1998, according to the latest estimates from International Data Corporation (IDC). Compaq's worldwide PC shipments grew by nearly one million units over the previous quarter, capturing an industry-leading 15.3 percent share of the worldwide market.

During the fourth quarter, Compaq improved its number one market position both worldwide and in theU.S. in desktop and PC server shipments. In addition, the company was the market share leader worldwide and in the U.S. in major desktop PC business market segments.

"Compaq moved aggressively to enhance its leadership position in Q4 by fully leveraging its Customer Choice model to deliver the best products, solutions, and services to customers the way they want to buy from us," said Enrico Pesatori, Compaq Senior Vice President for Corporate Marketing. "We are combining the market presence of our partners, resellers, and sales team with the power of the Internet to build stronger relationships with customers, driving strong market share gains for Compaq."

Desktop Sector

Compaq widened its lead in the worldwide desktop market to 6.2 share points over its nearest competitor during the fourth quarter as the company's worldwide desktop market share grew to 15.2 percent from 14.4 in the previous quarter. Compaq shipped nearly 850,000 more desktop PCs worldwide in Q4 than in the previous quarter.

In the important U.S. desktop market -- where Compaq shipped half-a-million more units than any other vendor -- Compaq saw significant growth in its market share lead at the same time its nearestcompetitor's share declined. Compaq's U.S. desktop market share grew nearly three points to 18.3 percent from 15.6 percent in the previous quarter; the company's nearest competitor's market share declined, dropping to 12.5 percent from 13.8 percent in the previous quarter.

PC Servers

Compaq extended its worldwide lead in the PC server market as its market share grew nearly two share points to a commanding 34 percent market share from 32.1 in the previous quarter. The company's worldwide PC server market share is greater than its largest two competitors combined.

In the U.S. PC server market, Compaq continued to extend its industry leadership position by delivering new four-processor ProLiant servers that delivered record setting performance. Compaq's U.S. PC server shipments grew 57 percent from the previous quarter. During the quarter, Compaq gained 5.7 points of share in the U.S., increasing its U.S. market share to 38 percent from 32.3 in Q3.

At the same time, Compaq's nearest competitor's share of the U.S. PC server market dropped to 15 percent, a steep decline from its previous 19.7 percent market share position.

Key Market Segments

Compaq's market share of the worldwide total business desktop category(1) grew to 18.5 percent in the fourth quarter from 17 percent in the previous quarter. The company's market share of the worldwide
large business segment grew to 23.9 percent during the fourth quarter from 22 the previous quarter. In addition, Compaq's worldwide small business desktop segment grew to 16.3 percent market share from 15.9 the previous quarter.

Gaining nearly four points of share from the previous quarter, Compaq ranks number one in the industry with 21 percent market share of the U.S. total business desktop segment. Compaq's leading 27.8 percent market share in the U.S. large business desktop segment grew over six share points from the previous quarter's 21.6 percent market share. In the U.S. small business desktop segment Compaq gained 2.7 share points from the previous quarter, achieving 18.1 percent market share during the quarter.

Compaq Background

Compaq Computer Corporation, a Fortune Global 100 company, is the second largest computer company in the world and the largest global supplier of computer systems. Compaq develops and markets hardware, software, solutions, and services, including industry-leading enterprise computing solutions, fault-tolerant business-critical solutions, enterprise and network storage solutions,
commercial desktop and portable products and consumer PCs. The company is an industry leader in environmentally friendly programs and business practices.

Compaq products are sold and supported in more than 100 countries through a network of authorized
Compaq marketing partners. Customer support and information about Compaq and its products are
available at compaq.com.

Compaq, Registered U.S. Patent and Trademark Office. Product names mentioned herein may be
trademarks and/or registered trademarks of their respective companies.

(1) The total business category includes market share data from the large business (500+ employees),
medium business (100 to 499 employees), small business (10 to 99 employees) and small office (less
than 10 employees) segments as defined by IDC.

CONTACT: Compaq Computer Corporation, Houston
Alan Hodel, 281/518-8932 (media contact)
alan.hodel@compaq.com