Dell leans for the line as market leader

By Matt Whipp

Posted on 18 Oct 2002 at 16:51

Survey shows Dell has pipped HP

Research company IDC has published its analysis of the global PC market for the third quarter, putting Dell a few hundred thousand ahead of HP in shipments.

The survey gives Dell 16 per cent of the global market, up from 13 per cent for the corresponding quarter in 2001. Conversely HP records a 15.5 per cent foothold, down from 16.9 per cent for Q3 2001.

HP contests the finding, putting the companies at a dead heat. A statement on HP's Web site reads: 'We've been taking aggressive action, and this report does not reflect recent PC price cuts, new product introductions and a number of major customer wins.' It also claims cost efficiencies, business model improvements and product innovations will help give back the lead to HP.

Dell CEO Michael Dell attributes the success to team work. 'It's a credit to our team and we're proud of the rate at which we're winning new customers, and retaining and expanding our business with existing ones,' he said in a statement.

Worldwide, PC shipments grew 3.8 per cent from Q3 of last year. This is the first growth after five consecutive quarters of decline. However, the increase was somewhat short of the forecasted four per cent.

The European market was bolstered by the mobile segment, although corporate spending remained cautious. The biggest gains were had by the Asian market, with double digit growth, led by China. In the US, there was optimistic signs of increased consumer spending.

'This was the quarter of the behemoths,' said Roger Kay, Director of Client Computing at IDC. 'Despite having to digest the results of its recently executed merger with Compaq, HP managed to register healthy sequential growth and gained share in the United States. And Dell... showed no signs of slowing its relentless pace as it grew to nearly 30 per cent of the market.'

The outlook remains restrained. Loren Loverde, director of IDC's Worldwide Quarterly PC Tracker, said: 'Growth remains limited, but at least the market is moving in the right direction... While business investment remains soft, it continues to improve slowly and should gain momentum as company financials respond to restructuring efforts of the past year. The consumer segment is also improving gradually despite uncertainty in the market.'