Global PC sales rebounding
Global PC sales are coming back despite worldwide economic uncertainties, with iMac frenzy expected to double Apple's shipments.
Woldwide sales grew 11 percent last quarter, and are expected to grow 12.2 percent for the second half of 1998, with strong U.S. and European growth outweighing Asian and Russian instability.
Most vendors have resolved the inventory gluts which led to fire-sale prices and shrinking margins in the first half of the year, according to market research firm International Data Corporation. Despite ongoing currency problems in Asian and more recently Eastern European markets, unit volumes and profit margins appear to be stabilizing.
Top 5 vendors, worldwide PC shipments, Q2 '98 | ||||
Vendor | 2Q 1998 Units | % 2Q 1998 Share | % 2Q 1997 Share | % Unit Growth |
1. Compaq* | 2,818,000 | 14.1 | 13 | 15 |
2. Dell | 1,815,000 | 9.1 | 5.7 | 71.5 |
3. IBM | 1,572,000 | 7.9 | 8.8 | -4.1 |
4. HP | 1,240,000 | 6.2 | 5.6 | 19.4 |
5. Packard Bell NEC | 896,000 | 4.5 | 5.3 | -8.7 |
* Compaq sales include all Digital Equipment Corp. PC sales for the quarter. Source: International Data Corporation |
Compaq continues to face challenges from direct seller Dell, who has managed to resist getting mired in the sub-$1,000 price wars, posting more than 70 percent growth in unit shipments, year over year. "Dell still has tremendous momentum," Stephen noted. "They're kind of in a zone unto themselves."
Hewlett-Packard also posted strong numbers, with almost 20 percent growth for the second half of 1998, fueled by momentum in the commercial market, Stephen said. The market wasn't rosy for every vendor, though. IBM slipped 4.1 percent, losing ground in the business market to Dell. Packard Bell NEC continued its downward spiral, posting negative 8 percent growth.