HP PASSES DELL IN WORLD PC SHIPMENTS

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HP PASSES DELL IN WORLD PC SHIPMENTS

 user 2006-10-19 at 1:28:00 pm Views: 52
  • #16546

    HP Passes Dell in World PC Shipments
    SAN FRANCISCO (Oct. 06) – Hewlett-Packard Co.
    supplanted Dell Inc. as the world leader in personal computer shipments during
    the third quarter, returning the bragging rights to Silicon Valley for the
    first time in nearly three years, according to figures released Wednesday by
    two influential research firms.Both Gartner Inc. and IDC pegged the overall
    third-quarter growth of the global PC market at just under 7 percent, but that
    trend was overshadowed by the industry’s new pecking order.The changing of the
    guard occurred after HP’s shipments climbed by 15 percent from a year ago while
    Dell’s edged up by less than 4 percent.By Gartner’s measure, Palo Alto-based HP
    shipped 110,000 more PCs than Dell to give it a 16.3 percent share of the
    global market compared to 16.1 percent for its Round Rock, Texas-based rival.It
    marks the first time since 2003′s final quarter that HP – now the world’s
    largest technology company – has held the top spot. HP expanded its PC business
    in 2002 with its $19 billion acquisition of Compaq Computer Corp. – a deal
    engineered by HP’s former chief executive, Carly Fiorina, who is now touting
    her accomplishments in a new memoir.IDC calculated things differently, but also
    agreed HP holds a narrow lead in the global market. Although HP shipped 28,000
    more PCs than Dell during the quarter, IDC pegged both companies market share
    of the worldwide market at roughly 17 percent.Dell retained a substantial lead
    in the U.S. market, where its dominance of the corporate market gives its a
    major advantage, analysts said.Nevertheless, HP also narrowed the gap in the
    United States, where its market share stood somewhere between 22 and 23
    percent. Dell’s hovered between 31 and 32 percent, according to the research
    firms.Both PC makers recently have been battling image problems brought on by
    embarrassing incidents.HP has been rocked by revelations of the shady tactics
    that investigators deployed in a cloak-and-dagger
    operation designed to plug a boardroom leak. The
    subterfuge included obtaining personal phone records under false pretenses – a
    scheme that culminated in congressional hearings and criminal charges against
    five people, including HP’s former chairwoman.The scandal, which erupted in
    early September, apparently didn’t deter the sales momentum that HP has been
    building since Mark Hurd became chief executive during the spring of
    2005.”HP continues execute well by taking advantage of the high-growth
    markets, particularly the consumer market,” said Charles Smulders, a
    Gartner vice president.In August, Dell recalled 4.1 million notebook computer
    batteries made by Sony Corp. because they can overheat and catch fire. That
    recall probably wasn’t a major factor in Dell’s lackluster third quarter
    because desktop computer shipments accounted for most of the weakness, analysts
    said.All the other major PC makers also picked up market share at Dell’s
    expense in the third quarter. China’s Lenovo Group Ltd. remained third in the
    worldwide PC market with a roughly 8 percent share, followed by Taiwan-based
    Acer Inc. at 6 percent and Japan’s Toshiba Corp. at 4 percent.In the United
    States, Apple Computer Inc.’s shipments rose by more than 30 percent from last
    year, reflecting strong back-to-school demands for its notebooks. The
    Cupertino-based company, which has become better known for its ubiquitous
    iPods, ended the quarter with a 6 percent share of the U.S. market.Dragged down
    by Dell, overall PC shipments fell by roughly 1 to 2 percent in the United
    States, according to Gartner and IDC. It was the first time since the second
    quarter of 2002 that U.S. PC shipments fell.The PC industry’s outlook for the
    crucial holiday shopping season remains muddy because Microsoft Corp.’s new
    operating system, the widely anticipated Vista, won’t be sold to consumers
    until January.Loren Loverde, director of IDC’s worldwide quarterly PC tracker,
    won’t necessarily discourage consumers from buying new computers during the
    fourth quarter because retailers are expected to slash prices to clear their
    shelves for the arrival of the new Vista-powered systems.”Consumers who
    don’t mind buying a computer with Windows XP are going to get some very good
    deals,” Smulders agreed.