Compaq Remains Number One in Worldwide PC Market, Although Dell Is Closing the Gap, IDC Says

FRAMINGHAM, MA – JULY 24, 2000 – Strong consumer demand in the Far East drove second-quarter 2000 year-on-year worldwide unit growth of 14.5%, according to preliminary estimates released today from IDC. Worldwide shipments rose to 30.1 million. This represents a seasonally expected sequential decline of 2.1%.

 

Markets in Asia/Pacific continued their strength as summer promotions in China and affinity marketing programs in Australia expanded consumer demand. High levels of consumer PC demand continued to swell in the Japanese marketplace, which accounted for the highest growth of all regions this quarter. Sales of portable PCs in Europe were very healthy and offset slow desktop and server demand throughout the region. Elsewhere, Latin America also exhibited higher than total market growth, benefiting from continued economic recovery in Brazil, Chile, and Argentina.

Worldwide growth far exceeded that of the United States in the second quarter of 2000. The U.S. market expanded a mild 7.2% over the year ago quarter to a unit shipment total of 11.7 million. “The U.S. commercial market began to recover from Y2K-related sluggishness,” said Gabrielle Griffith, senior analyst of IDC’s U.S. PC Tracking. “But corporate America is still slow to adopt Windows 2000 and seems to be taking a wait-and-see approach to upgrading hardware.” Consumer demand was mild as buyers waited for back-to-school sales in the fall. Following the worldwide trend, U.S. portable shipments grew at a stronger rate than desktops.

Vendor Results

Unit gains worldwide were solid for most major vendors. PC vendor strategies focused on channel partnerships and building “outside the box” revenue. Vendors planned well for component supply and memory prices, and overall PC supply was not constrained by these factors.

In the United States, Dell retained its number-one position over Compaq and increased its market share. Dell enjoyed the pick-up in corporate demand as it continued to march forward with its business-to-business ecommerce strategy. The direct giant remained at number two behind Compaq in worldwide market share but managed to close the gap. Compaq’s unit shipments declined in the United States and grew only 6% worldwide.

Hewlett-Packard continued to hold the number-three spot in the United States, boosted by its number-one position in U.S. retail desktops. The company had an impressive quarter worldwide and posted 34% growth year-on-year, allowing it to defend the number-three position worldwide against a recovering IBM. Showing better execution and recovery from product strategy and transition problems, IBM reappeared in the top five in the United States and knocked on HP’s door from the number-four spot worldwide.

Fujitsu Siemens has lost some momentum but retains its number-five ranking worldwide in a close race with NEC.

Table 1

Top 5 Vendors, U.S. PC Shipments, Second Quarter 2000 (Preliminary)

(Thousands of Units)

Q2 2000 Q2 2000 Market Q2 1999 Market Growth

Rank Vendor Shipments Share Shipments Share 2000/99

1 Dell 2,290 19.6% 1,809 16.6% 26.6%

2 Compaq 1,697 14.5% 1,798 16.5% -5.6%

3 Hewlett-Packard 1,221 10.4% 841 7.7% 45.2%

4 Gateway 964 8.2% 845 7.7% 14.1%

5 IBM 714 6.1% 876 8.0% -18.5%

Others 4,818 41.2% 4,754 43.5% 1.3%

All Vendors 11,704 100.0% 10,923 100.0% 7.2%

– Vendor shipments are branded shipments and exclude OEM sales for all vendors and represent shipments to distribution channels or direct to end users.

-Data for all vendors are reported for calendar periods

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-Data for Compaq includes shipments for Compaq, Digital Equipment and Tandem.

Source: IDC, 2000

Table 2

Top 5 Vendors, Worldwide PC Shipments, Second Quarter 2000 (Preliminary)

(Thousands of Units)

Q2 2000 Q2 2000 Market Q2 1999 Market Growth

Rank Vendor Shipments Share Shipments Share 2000/99

1 Compaq 3,987 13.2% 3,758 14.3% 6.1%

2 Dell 3,454 11.5% 2,825 10.7% 22.3%

3 Hewlett-Packard 2,255 7.5% 1,678 6.4% 34.4%

4 IBM 2,247 7.5% 2,344 8.9% -4.1%

5 Fujitsu Siemens 1,388 4.6% 1,252 4.8% 10.9%

Others 16,769 55.7% 14,429 54.9% 16.2%

All Vendors 30,100 100.0% 26,286 100.0% 14.5%