Global Q1 PC sales still slow, Dell gains

By Peter Henderson

SAN FRANCISCO: Global personal computer sales were sluggish in the first quarter, indicating the hobbling industry was nearing recovering, but slowly, two leading technology research firms said on Thursday. Both International Data Corporation (IDC) and Gartner Dataquest released surveys showing Dell Computer Corporation continued to take market share from competitors, chiefly in the United States at the expense of Compaq Computer Corporation and Gateway Inc.

IDC reported worldwide sales of PCs dropped 2.7 per cent to 31.4 million computers and sales in the United States, which IDC expected to lead a recovery, slid 0.4 percent. "The good news is that the U.S. market has truly reached low tide and is turning around, albeit slowly," IDC analyst Roger Kay said in a statement.

PC sales slid for the first time since 1985 in 2001, dropping 4.6 per cent globally, according to Gartner. IDC analyst Loren Loverde said the 2.7 per cent first-quarter contraction compared with an expected 5.4 per cent decline and that IDC would raise its growth forecast for 2002, which had been 3.2 per cent.

Gartner for the first quarter saw flat global sales and a 2.3 per cent rise in the United States but cautioned the improvement reflected weak year-ago performance rather than real improvement. "With little evidence of return to growth in the large accounts segment, the market outlook for 2002 remains highly uncertain," Gartner vice president Charles Smulders said in a release.

Gartner gave the Hewlett-Packard Co. notebook division credit for keeping HP sales brisk despite the uncertainty around the merger it plans with Compaq. Buyers appeared to want to try out notebooks, unlike desktops, boosting sales through the retail channel, where HP is strong, at the expense of direct sellers like Dell.

Both research firms had Dell increasing U.S. sales more than 16 per cent, giving it 26.3 per cent of the market, according to Gartner. IDC showed Dell at 28.4 per cent of the market, Compaq sales off 13.1 per cent to give it 12.1 per cent of the U.S. market, HP sales up 0.2 per cent for a steady 10.2 per cent share, Gateway down 29.6 per cent for 6.1 per cent share and International Business Machines Corp. sales up 2.0 per cent for 5.4 per cent of the market.

Worldwide, both researchers showed Dell sales up by double digits and Compaq down by low double-digits, HP sales around 3 per cent and IBM sales down about 9 per cent. Gartner showed Dell No. 1 globally with 14.3 per cent of the market followed by Compaq with 10.1 per cent, HP with 7.1 per cent, and IBM with 5.6 per cent, and IDC had similar figures.

(c) Reuters Ltd.