Dell regains market leadership
PC market still tough for computer retailer
November 15 2002
Strong sales growth at Dell has seen the PC manufacturer regain its position as the biggest producer and retailer of PCs.
The merger of Hewlett-Packard and Compaq earlier this year saw the combined group overtake Dell for the top spot. However, a 31 per cent rise in profits to $561m in the three months to the end of October put Dell back at number one.
Dell said: “The company regained its position as the favourite computer company among US consumers, and ranked No.1 in all US customer segments for the first time.”
Shipments in the current quarter are forecast to rise by 23 per cent. However, the growth has been achieved through an aggressive price strategy which has allowed it to win market share from rivals despite continuing tough market conditions.
Chief financial officer Jim Schneider said. “While we saw a few encouraging signs in the third quarter it is still too soon to call a rebound in overall IT spending. The demand environment has not changed.”
Dell plans to more directly challenge Hewlett-Packard by expanding its product offer into printers and handheld computers.
