To ALL: From COMTEX re DELL growth by 49.1%
tscn.com
With these numbers, Tuesday should be BIIIG
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5/15/99 - PC arena still packs a punch -- Worldwide industry shipments hit 25 million units for first quarter of
1999
May. 14, 1999 (Computer Reseller News - CMP via COMTEX) -- San Jose, Calif. - Compaq Computer Corp. topped strong worldwide PC shipments but lost market share for the first quarter of 1999, according to a recent research report.
Worldwide industry shipments for the quarter reached 25 million units, up from 21.3 million for the same quarter a year ago, according to preliminary results from Dataquest, a San Jose-based market-research firm. The industry growth rate topped 17 percent.
Strong consumer sales, especially in Europe, fueled overall industry growth while corporate sales remained stable, said David Stremba, principal analyst for Dataquest's Personal Computers Worldwide Program.
"The commercial side is dealing with Y2K issues," said Stremba. Houston-based Compaq topped the list with 3.4 million units shipped, up from 3 million the previous year, but saw market share dip to 13.4 percent, down from 14.3 percent.
Compaq's 9.9 percent growth rate pales in comparison to No. 2 Dell Computer Corp., which saw growth of 49.1 percent.
"Compaq is in a precarious situation because they don't have proven leadership at the top," said Stremba.
At least two more months will pass before Compaq finds an appropriate leader, and a real turnaround in the company's performance will not be seen until the end of 1999 or early 2000, Stremba said.
Confusion in the channel over Compaq's move toward a hybrid distribution model also slowed the company's growth, he said.
Compaq's poor performance rate took some industry watchers by surprise, said Stremba.
Dell, Round Rock, Texas, shipped 2.3 million units, up from 1.5 million the previous year. Its market share grew to 9.2 percent, up from 7.2 percent.
"Dell was able to capitalize on some the missteps made by Compaq in the marketplace," said Stremba.
Because Dell's direct model gives it total control over its distribution, it is easier for the company to meet unit-shipment goals, said Stremba.
"The challenge for Dell is to meet revenue and margin growth," he said.
IBM Corp., Armonk, N.Y., placed third, shipping 2.1 million units, up from 1.6 million the year before. It market share grew to 8.4 percent, up from 7.5 percent. The company's growth rate reached almost 31 percent.
"IBM seems to be recommitted to the PC industry," said Stremba. "They've learned that the PC is just one element of their overall business that actually brings on other higher margin business."
Hewlett-Packard Co., Palo Alto, Calif., and Gateway Inc., North Sioux City, S.D., rounded out the top five.
Industrywide, U.S. shipments grew almost 21 percent to 9.7 million up from 8 million for the same quarter the year before.
Compaq shipped 1.5 million units, up from 1.4 million the year before, but saw market share shrink to 15.7 percent, down from 17.8 percent the year before.
With 50.8 percent growth, Dell shipped 1.4 million units, up from 915 thousand the year before, with market share jumping to 14.3 percent, up from 11.4 percent last year.
Gateway grabbed the No. 3 spot with 40.7 percent growth, while HP and IBM came in fourth and fifth place, respectively.
Dataquest is expecting a "fairly good" second quarter, with the industry growth rate reaching 14 percent to 15 percent, said Stremba.
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By: Jennifer Hagendorf
Copyright 1999 CMP Media Inc.
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