Dell returns to strong growth

 

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Posted on 17 Jan 2008 at 08:01

Dell has returned strong sales figures in the fourth quarter, as its new high-street retail strategy begins to pay off.

Figures from IDC reveal that Dell shipped 17.1% more PCs in the quarter than during the same period the year-earlier. That amounts to around 11.3 million units and 14.6% of the global PC market, solidifying the company's number two position, behind HP.

The figures represent something of a turnaround for the manufacturer, which this time last year was watching its worldwide shipments shrink by 8.4%. Despite Dell's resurgence, HP has kept hold of its number one spot, claiming 19% of the global market, though growth has fallen due to slow demand across Europe, the Middle East and Africa, and increased competition in the US.

"Having struggled through the past year, Dell is starting to turn around," IDC says in a statement. "The company's rapid expansion in retail also has helped boost volume and address competition from other leading players."

Dell abandoned its direct-only sales model last year, following the return of Michael Dell as CEO. Since then it has signed deals with DSG and Tesco in Europe and Wal-Mart in the US.

Overall, IDC says that global PC sales rose a healthy but less-than-expected 15.5% in the fourth quarter, though economic concerns in the US are expected to slow future growth.

Author: Reuters